Home values in August saw the largest annual increase since 2006, according to data released Monday by Zillow.
National home value appreciation was up in August by 0.4% from July and 6.6% annually, according to the Zillow Home Value Index. The year-over-year increase was the largest annual gain since July 2006, when home values spiked 7.9% year-over-year.
According to Zillow, 85% of the 382 metropolitan areas surveyed for the study saw annual appreciation in August, with 20 out of the 30 largest metro areas seeing annual appreciation of 10% or more. Areas with the largest annual increase included Sacramento, which saw appreciation spike 34.1%, and Las Vegas, which posted a 30.6% annual increase.
Home values are expected to rise another 5.2% between August 2013 and August 2014, according to the Zillow Home Value Forecast. However, Zillow Chief Economist Stan Humphries said he expects appreciation to slow in the coming months.
"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," Humphries said. "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."