Home Prices

To complicate further the problem of measuring home prices, we analyze the characteristics (including price) of new homes sold in California.

Because we measure new-home prices, our prices differ from resale prices. In large part this difference is due to new-home prices being more influenced by the pattern of development. In 1988, the lower-priced, faster-growing areas of the state increased significantly. This caused the statewide increase in new-home prices to be more modest (6.8%) than the increase in resale price (+18.4% for detached, +9.3% for condos).

BEN BARTOLOTTO

Burbank

Bartolotto is research director for Construction Industry Research Board.

Letters must include the writer’s name, address and daytime telephone number and should be sent to the Real Estate Editor, Los Angeles Times, Times Mirror Square, Los Angeles 90053. Letters may be edited for reasons of space and clarity.