We study the properties of (K) over bar* mesons in nuclear matter using a unitary approach in coupled channels within the framework of the local hidden gauge formalism and incorporating the (K) over bar pi decay channel in matter. The in-medium (K) over bar *N interaction accounts for Pauli blocking effects and incorporates the (K) over bar* self-energy in a self-consistent manner. We also obtain the (K) over bar* (off-shell) spectral function and analyze its behavior at finite density and momentum. At a normal nuclear matter density, the (K) over bar* meson feels a moderately attractive potential, while the (K) over bar* width becomes five times larger than in free space. We estimate the transparency ratio of the gamma A -> K+K*(-) A` reaction, which we propose as a feasible scenario at the present facilities to detect changes in the properties of the (K) over bar* meson in nuclear medium.