Home Prices Reach Record High Despite Softening Market

Realtor.com reports that the median U.S. home price crossed $300,000 for the first time in March, despite slowing annual price growth.

Nationally list prices shot up 7.2 percent year over year in March, significantly outpacing inflation, which was just 1.5 percent in February. Leading the rise was Milwaukee, with a 16 percent jump in home prices year over year, followed by Rochester, N.Y., at (14 percent), and Memphis, Kansas City, Mo., Indianapolis, and Birmingham, Ala.,, all at 13 percent.

"Prices are continuing to rise and they're going to get higher," says Danielle Hale, chief economist of realtor.com. "The same property today that's for sale is more expensive, and we're seeing more higher-end homes for sale."

So why are prices rising if the real estate market is supposed to be softening?

"In a slowing market, it's not uncommon to have a gap between list prices and sale prices. It can take sellers a little bit of time to catch up to the reality," Hale says.

Read more