Inventory surge keeps lid on home values

National home values posted their smallest monthly increase since May 2012, rising 0.2 percent from December to January as the number of homes on the market grew 11.2 percent from a year ago, according to estimates generated by Zillow.

Zillow’s Home Value Index — which attempts to estimate the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period — pegged national home values at $169,600, up 6.3 percent from a year ago.

Inventory was up in 22 of the 35 largest metro areas covered by Zillow, with Phoenix, Las Vegas and Sacramento seeing the biggest increases. Source: