US Foreclosures Fall 6 Percent In May From April

The supply of new foreclosures had diminished in recent months as banks held off on taking back properties, but it's starting to surge again, said Gary Kent, a San Diego real estate broker who focuses on the foreclosure market.

"Everything I've got that's priced right is just flying off the shelves," he said.

On a state-by-state basis, Nevada had the nation's highest foreclosure rate in May with one every 64 households receiving a filing. California took the No. 2 slot previously occupied by Florida. California's rate was one in every 144 households.

In Florida, one in every 148 households received a foreclosure filing. Rounding out the top 10 were Arizona, Utah, Michigan, Georgia, Colorado, Idaho and Ohio.

Among large cities, Las Vegas led the way with one in every 54 households receiving a filing.