New York property has seen the lowest house price falls compared to all other areas of the US, a new survey has revealed.

Property values in Manhattan dipped by 5.8 per cent during the fourth quarter of 2008, the poll by Zillow found, which followed price increases for the first nine months of the year.

And the New York metro area recorded the lowest rate of foreclosures in the US at 3.9 per cent, the data showed.

This is compared to Stockton in California, where foreclosures accounted for half of all sales.

"Public policy, in terms of both job creation and efforts to stem the tide of foreclosures, will have a large influence on when some of these markets find bottom," suggested Dr Stan Humphries, vice president of data and analytics for Zillow.

Investors in New York property may come across one of the city’s more unusual events this month.

The Sword Dance Festival takes place on February 14th and 15th, providing a platform for 14 performing groups to showcase their skills.

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