Southern California property prices dropped by more than a third in 2008, new figures have revealed.

The latest study by MDA DataQuick revealed that in that part of the state the median price in December was $278,000, (£200,000) compared with $425,000 in December 2007, representing a drop of 34.6 per cent.

Such a fall in price may interest those seeking California property bargains in the southern part of the state.

MDA DataQuick also revealed that foreclosed property accounted for an increasing share of the resales market, representing 55.7 per cent of such transactions in December, compared with 24.3 per cent a year earlier.

This may suggest that those seeking the best price for a California property are finding it in the repossessed homes sector.

Last month RBS Greenwich Capital analyst Michelle Girard noted that the state has recently been bucking the trend that has seen property transactions falling in the US, Reuters reported.

She put the increasing sales activity in California down to buyers "taking advantage of substantially discounted prices".

Visit Rightmove Overseas for the best selection of California property. Stop dreaming, start searching!