New-home prices rise despite low demand

There currently isn’t a big demand for new homes, but Wall Street Journal blogger Eric Morath found that new-home prices are surging.

Data from the Commerce Department shows that in October, the median price for a new home sold in the U.S. rose 15 percent from a year earlier to $305,000, the highest level on record. Morath argues that this price increase is what hurt new-home sales when the low interest rates and an improving labor market should be supporting sales.

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