LOS ANGELES, Mar 18, 2006 (UPI via COMTEX) — Real estate speculators have moved out of the Southern California housing market to new hot spots like Phoenix, Las Vegas and Florida. The speculative boom in Los Angeles and Orange County peaked in early 2004 when 14 percent of houses and condominiums were being sold to absentee owners, the Los Angeles Times reports. In 2005, across the country, speculators were buying about 25 percent of properties. Two factors damping speculation in southern California are a slowdown in new construction and high and steadily increasing prices. The median price in Los Angeles is now $490,000, while in Orange County it’s a whopping $617,000. Jay McKee, who made a quick profit of $250,000 on an ocean-view condo in California, reinvested in Phoenix, buying 10 properties and starting a real-estate business. “To do it in Southern California would be much more costly,” said McKee. “You definitely get more for your money in Phoenix.” Phoenix may not be inexpensive for long. House prices in the area escalated 40 percent last year, the highest rate in the country. URL: www.upi.com