One house sold for $337,000 five years ago. It just sold for $80,000.
Zillow.com says Merced is the fourth best place to find a home bargain in the country.
"You really want to think about staying in that home 5, 7, even 10 years because when home values hit the bottom it doesn't mean they are going to shoot back up. They will likely languish for a couple of years," says Amy Bohutinsky, from Zillow.com.
Other cities in the top five include Naples, Florida, Cape Cod, Massachusetts, Charleston, South Carolina and Chicago, Illinois.
