National home values in August posted their highest annual increase since July 2006, climbing 6.6 percent year over year, according to the August Zillow Value Index.

But despite the increase, August’s monthly value appreciation, 0.4 percent, was lower than July’s, marking the third straight month that value gains have slowed on a monthly basis.

“August marked the end of one of the hottest summer home shopping seasons in years, as home value appreciation rates continued their rocket ride upward — perhaps dangerously so in some metro areas,” said Zillow Chief Economist Stan Humphries.

“Double-digit appreciation rates do help to lift homeowners out of negative equity and to entice sellers into a low-inventory environment, but this rapid growth is not normal and cannot and should not be expected to last.”

“We are already beginning to see moderation in the monthly pace of home value appreciation, which will be good for the market overall and in the long term.”

Source: Zillow

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