Despite moderate moves higher in home sales, home prices are on a tear.
The median price of a newly built home soared to $271,600, the highest level on record dating back to 1963, according to a new report from the U.S. Census. Prices are now 15 percent higher than they were a year ago for new construction and around 10 percent higher for existing homes.
"We've gone through a very long downturn and prices overcorrected. The first move is we're seeing a kickback or reversion to normal," said Stuart Miller, CEO of Lennar Homes, one of the nation's largest homebuilders. "It feels like prices are on the move, but they're just snapping back to pricing levels they should have been at."
(Read More: Map: Tracking the US Real Estate Recovery)