Older homes command higher prices in California

Age apparently has its advantages in California's real estate market. The median price of resale homes in the state is well above that of new homes, which is counter to the national trend.

The National Association of Realtors reported that the U.S. median price of resale homes was $218,900 in 2007, 11.3 percent below the median new-home price of $246,900 in 2007.

But in California, the median price of single-family detached resale homes was $558,100 in 2007, or 28.3 percent higher than the median single-family new-home price of $434,900. For the month of December, the median resale price of single-family homes in the state was 19.2 percent higher than the median price of single-family new homes.

Ara K. Hovnanian, president and CEO for builder Hovnanian Enterprises, referred to this "backwards" trend last year, as builders have dropped prices and sweetened incentives in an effort to kick sales into gear during this severe slowdown.

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