Gas Prices Latest Worry for So. Cal. Real Estate Market

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Rising gas prices may be the latest ailment afflicting the housing market, as figures released Monday showed Southern California home prices plunging 27% in May from a year ago and falling even more precipitously in distant suburbs, the L.A. Times rerpots.


Outlying areas like the Antelope Valley and the Inland Empire have long appealed to people who were willing to accept a burdensome commute for the chance to own a better house. But buyers are increasingly factoring gasoline costs into their purchase decisions, said Dan Griffith, a Rancho Cucamonga-based real estate agent.”It seems like the money they can save in housing is being absorbed by higher gas costs, so they are a little reticent to commit,” Griffith said. “Gas is definitely beginning to be a concern.”


The median home sale price in six Southern California counties sank to $370,000 in May, down from $505,000 a year earlier, according to DataQuick Information Systems.


DataQuick said that was the biggest annual decline it has recorded since it began tracking prices in 1988. The last time the median was lower was in March 2004, when it was $364,000.



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