Home values in the United States rose more slowly in August on a monthly basis than they have in a year, according to Zillow.
In August, home prices increased 0.1% from the prior month, the Seattle-based analytic provider reported on Friday. The Zillow home value index was $175,600 in August, up 6.6% from a year ago, but this represents the slowest annual increase in the last 12 months.
One reason why home price appreciation is slowing down is because more homeowners are now selling their properties. There was a 20.6% uptick in the number of homes listed for sale on Zillow in August compared to a year earlier.
The best sellers’ markets are on the West Coast, including the California cities San Jose and San Francisco, as well as Seattle. These markets favor sellers with quick sales and high asking prices, Zillow said, with the final sales prices largely at or above asking value.
Conversely, the top buyers’ markets are predominantly in the Northeast and Midwest, Zillow said, with Providence, R.I., Cleveland, Philadelphia, Milwaukee and Chicago accounting for the top five. Here, buyers are less likely to face bidding wars for a property that is currently happening in the top sellers’ markets.
Meanwhile, national home values have gone up month-over-month for more than two years, according to Zillow. The pace of home price appreciation is expected to rise another 3.1% through next August, Zillow said.