Prices in this Northern California city fell more than 40 percent in 2008.
Photo courtesy of Stockton Conference & Visitors Bureau

Bargain Market #1: Stockton, CA

The inland California cities -- Stockton, Merced, Modesto, Vallejo, Riverside, Bakersfield, Madera and Fresno, to name a few -- have been the hardest hit since the real estate housing bubble burst. Home prices in Stockton plummeted a whopping 40.19 percent last year, dragged down by a barrage of foreclosures on the market.

But Stockton's proximity to both the San Francisco Bay Area and the Sacramento area gives it an advantage over other struggling markets. In the past, Bay Area folks sought affordable housing in Stockton (which changed when the market became inflated). Once prices stabilize, the city will have the potential to return to its "affordable" status.

• Explore Stockton landmarks and hot spots

• Take a tour of nearby cities in FrontDoor's San Francisco City Guide and Sacramento City Guide

• Browse homes for sale in Stockton, CA

• Get tips and advice on how to buy a foreclosure property

• Know the factors of a smart real estate investment

NEXT: FrontDoor's Top 10 Bargain Markets for Homebuyers >>

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More Homebuying Resources:

• First-Time Homebuyer's Guide
• House Hunters Homebuying Guide
• Moving Guide
• Home Finance Guide
• Foreclosure Guide