Paramount,CA home prices at new low

Question:Which U.S. city has been the worst affected by this year's housing slump????

Answer:Paramount, CA

In Paramount, home sales dropped 78% in the third quarter from the third quarter in 2006, from 134 home sales to only 30 last quarter. Home prices in the city, located south of Los Angeles, rose last year to $500,000 for a "typical house" from $200,000 in 2003. Many of the sales were driven by adjustable-rate mortgages with low initial payments, a type of home loan that is more difficult to get these days. Other areas of the country seeing big drops in home sales tend to be moderate-income towns on the outskirts of major metropolitan areas, where adjustable-rate mortgages had become the norm. Many of these towns are located in California's Inland Empire east of Los Angeles.

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