New research has indicated that those buying in the California property market can enjoy lower prices in the San Fernando Valley, which is partly made up by a portion of Los Angeles.

The San Fernando Valley Economic Research Centre’s economic report 2008 has found that there has been a 203 per cent year-on-year rise in the number of foreclosures in the period between July and September this year.

However, the report noted, this has led to an increase in the availability of homes, along with lower prices, which could mean that those who want to buy a California property can find attractive bargains.

This trend for a levelling of prices but an increase of sales as California property becomes more affordable will continue into 2009, it has been predicted.

Such a forecast was made in a report by the California Association of Realtors earlier this month.

However, in news that may interest longer-term investors, the body’s president William Brown forecast that the financial system will be displaying signs of stabilisation by the end of 2008, something that could alter the state of the market in the year ahead.

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