California property seekers may find they are entering a market near the bottom in at least one part of the state, it has been suggested.

Positive signs have emerged that San Diego county is starting to pick up, with increased sales, competitive price bids and more confidence detected among first-time buyers and builders, the Union-Tribune reports.

Commenting on the situation, local investor Jeff Grad told the paper: "I think it’s the beginning of the real estate market starting to rebuild. I can’t see it heading much further south."

Another upbeat note was sounded by economist Christopher Thornberg, who said those buying in the area now are "smart investors".

Such sentiments may tempt those thinking of buying California property to take a closer look at San Diego or other parts of the state.

California was recently shown to have the highest number of foreclosed properties of any US state, something that may interest bargain hunters.

Figures from housing research body RealtyTrac showed that there were 80,775 homes there for which a foreclosure filing was issued in February.

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