New house prices down more than old ones

In past blog posts, we have noted that when the real estate market crashes, prices do not adjust; rather quantity does. Now we learn that new house prices have declined by more than old house prices:

And while new construction has declined from its highs of a year or two ago, it has not disappeared. From January to October of this year, Los Angeles County has approved about 17,000 new housing units. Owners of new units planned while prices were at their peak may be loath to chop prices in the wake of the housing downturn, but newly approved units, conceived amid the bad news of the past year, should enter the market priced to move.