Many cities across the country posted a decline in their inventory of homes for sale last month as bargain-hunting buyers and investors continue to search for distressed properties.

As of July 31, the number of homes for sale on the market in 28 major cities across the country dropped by 2.5 percent compared with figures the previous month. Homes for sale include condominiums, single-family houses and town houses.

Since 1984, July inventories on the national basis have dropped by an average of 1 percent compared with the June level. Last month’s inventory rate in 28 major metropolitan areas in the country dropped by 27 percent compared with June figures the previous year.

According to industry experts, the exact inventory rate could not be determined because the numbers do not include all bank owned foreclosed house that are due for release on the market for sale by lenders.

They said that almost 50 percent of foreclosed properties are not listed for sale by banks, adding that many of these repossessed homes are being used as rentals. Also, some foreclosed houses that are not listed need major repairs and are subject to delays or litigation.

Some industry analysts are expecting a resurgence of foreclosure properties on the market before the year ends. They explained that the resurgence would be driven by the increasing unemployment rate which left many financially-struggling homeowners unable to pay their monthly mortgages.

Other factors that would contribute to the anticipated surge of foreclosures this year are the resetting of adjustable-rate mortgages and the decision by lenders to pursue foreclosure actions that have been delayed due to moratoriums in several states that aimed to help distressed homeowners remain in their homes.

Furthermore, industry analysts are expecting that some major metropolitan areas that were spared from the foreclosure crisis will experience the next wave of foreclosures.

In the first six months of this year, cities with over one million population experienced a rapid rise in foreclosure rates. Las Vegas, Nevada posted the most number of foreclosure filings for the period, with one out of 13 properties on the brink of foreclosure.

Another city that has been spared from the crisis last year is Chicago, Illinois which now posted a 30 percent increase in its foreclosure activity.