If you’re in the market to buy a home in Southern California, the news just keeps getting better and better. The median home price fell last month once again as the housing market struggles to maintain any sort of momentum going into what is traditionally the height of the home buying season. The median price of a Southern California home fell more than eight percent to $280,000 in May, representing the largest year-over-year in nearly two years.

The long predicted and much anticipated double-dip in housing prices appears to have come to fruition according to data released by S&P/Case-Shiller. Prices on single-family homes in March dropped to levels not seen since March 2003 in the United States, and below the previous post housing bust low recorded in April 2009. The March figure represents a drop of 3.6% versus last year’s home prices.

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The supply of existing-home inventory continues to fall as real estate investors remain on an all-cash buying spree in those markets especially hard-hit by the foreclosure crisis. The investor feeding frenzy is reducing the glut of foreclosures on the market and setting the stage for higher prices in the not-too-distant future, according to some experts.

The median price for existing homes in the United States declined to less than $160,000 in January 2011, the lowest level seen since 2002, according to the National Association of Realtors. A record number of purchases of short sales and foreclosures helped drive prices down, but contributed to a 22% increase in total sales versus October of last year.

Want to buy a house cheap? Buy a foreclosed home. According to recently-released statistics, residential real estate properties in the foreclosure process sold at an average discount of 28% for the 2010 calendar year.