Us house prices see largest growth since 2006

The report shows that property values rose 0.4 per cent from July 2013. The average price is now $162,100, 6.6 per cent higher than August 2012, the largest annual gain since July 2006, when prices jumped 7.9 per cent.

August’s increase marks two years without a month-on-month decline in prices, but that increase is slowing down: August was the third month in a row where monthly rises were smaller than the previous month.

Nonetheless, the picture is generally positive, with 85 per cent of the 382 metros in August experiencing annual growth. Of the 30 largest areas covered by Zillow’s index, 20 saw prices jump year-on-year.

“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,” commented Zillow chief economist Stan Humphries.

 “Double digit appreciation rates do help to lift home owners 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.”