A drop in the value of California property has been recorded in a new poll.

Research conducted by Zillow has revealed that more than half the sales during the fourth quarter of 2008 in Central Valley, California were foreclosures – the highest amount across the US.

House prices dropped by 33.4 per cent year-on-year in the Stockton area of California, the firm found, news that may interest California property investors seeking a bargain.

Dr Stan Humphries, vice president of data and analytics for the firm, explained why house prices are continuing to fall across the US, stating: "A witch’s brew of economic insecurity, foreclosures and tightened lending standards are helping to keep hard-hit markets down and to widen the scope of markets showing declines in home values."

The trend of falling property prices was also noted by the California Association of Realtors recently.

It said house values plummeted 41.5 per cent in the 12 months up until December 2008.

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