Home prices in California will drop 6 percent next year after falling about 32 percent this year, as foreclosed houses jam the market and the credit crisis makes it difficult for prospective homebuyers to obtain mortgages.

The median price for detached, single-family homes in the most populous U.S. state likely will drop to $358,000 next year from an estimated $381,000 this year, the California Association of Realtors said in its annual housing forecast released today. The number of homes sold likely will rise 13 percent to 445,000 next year, following a 12 percent increase this year.

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