Property with strong rental yields in key cities across the US is again becoming popular, according to data released this week by the National Association of Realtors, which showed that international sales reached $82.4bn in the year to March 31, up from $66.4bn in 2011.

The Chinese are now the second largest foreign buyers of US homes behind Canadians, accounting for 11% of sales in the year to March 2012, up from 9% in the previous year.

While lenders are still keen to avert foreclosures by extending loans, so called distressed inventory is starting to sell because banks are now in a better position to absorb greater losses and free up capacity on their balance sheets.

Los Angeles is reported to be growing in popularity with foreign buyers as prices are currently up to 70% cheaper than in Manhattan.

Pending sales of US homes were also higher in April 2012, compared to the previous year, said the National Association of Realtors.

Forward-looking figures from the NAR show that sales were 14.4% higher than in April 2011.