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Report: Home prices down to 1989 value

June 10, 2009 5:53:31 AM PDT
New numbers show that in some areas of Southern California, home prices have dropped to their lowest level in 20 years.The new numbers are great news to first-time home buyers and for investors, but not for those who bought homes during the housing boom and are now watching their homes depreciate.

Home prices have dropped across Southern California, but the Antelope Valley and the Inland Empire have seen some of the most severe price drops.

Lancaster, San Bernardino, Oxnard and Santa Ana are cities hit hard by the drop in home prices.

Lancaster's median home price dropped 74 percent, from $334,000 in 2007 to $87,000 in April of this year.

In San Bernardino, it's even worse, where the peak was $370,000 in 2007. Now, houses are selling for about $60,000.

Median home prices are at levels not seen since 1989.

Economists said losing two decades worth of gains in a single downturn has never happened before, adding that the abnormality can be blamed on the easy credit so many first-time buyers depended on to get into a house.

People flocked to the outer reaches of the Antelope Valley and Victor Valley to buy, and they were among the first to default when the economy crumbled.

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