VALLEY PRESS STAFF and Wire Reports
September 28, 2005
Valley economy outstrips nation's
 
PALMDALE: The economic strength of the Antelope Valley may protect it from a projected sag in growth in the next few months, thanks to a demand for affordable housing. "The extreme north end of Los Angeles County is doing a lot better than other parts of the country," said Ryan Ratcliff, economist with the UCLA Anderson Forecast, on Tuesday.
 
"There is a tremendous demand for home" in the region, he said, but some of it is speculative and investment oriented. Property prices have been rising at more than 20% a month in some areas of the county, which makes that investment very attractive. "It just blows the stock market away" for investors, Ratcliff said. If the economy in the rest of the state softens, it is likely that investment in real estate will decline, affecting prices and inventory everywhere.
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The affordability of homes in the Valley, where new residences can be bought for $320,000 and existing homes still sell for under $300,000, has kept the market strong. The median price for a home in the rest of the state is above $400,000.
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