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Home Prices Fell 13 Percent in December

San Diego County's median home price fell 13 percent in December, compared to the year before. La Jolla-based DataQuick says that's the steepest drop in two decades of record-keeping. But as KPBS repo

Home Prices Fell 13 Percent in December

San Diego County's median home price fell 13 percent in December, compared to the year before. La Jolla-based DataQuick says that's the steepest drop in two decades of record-keeping. But as KPBS reporter Andrew Phelps tells us, it may not be as bad as it sounds.

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In one year, the median home price dropped from $495,000 to $430,000.

Despite lower prices, sales also fell in December -- more than 35 percent from the year before. But John Karevoll of DataQuick says the sky is not falling. The market is recovering from the subprime loan disaster. And he expects demand to pick up again.

Karevoll: People move to an area, they leave an area, they graduate from college, they get married, they have kids, they get divorced, they lose their jobs, they die. All of these things generate demand. Anybody who can right now is waiting till this turmoil recedes.

Karevoll says one thing could stop demand in its tracks: a recession.

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Andrew Phelps, KPBS News.

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