Home values increased by 7.3% in April, the strongest rate of year-over-year appreciation in more than 10 years, according to Zillow.

But the U.S. is not in or on the verge of entering another housing bubble, said Zillow Chief Economist Svenja Gudell in a press release.

April's median home value is $198,000, compared with $187,000 in April 2016.

It is also 1% higher than in May 2007, near the end of the housing boom, when the median value was $196,000.

"There are big differences between the market then and the market now: Then, loose credit, speculation and overbuilding were ingredients in a recipe for disaster. Now, healthy homebuyer demand is being driven largely by a stable economy and demographic tailwinds, which is exactly what we would expect in a healthy market," Gudell said. "Supply has been slow to catch up to this demand, which is causing home values to grow at a faster clip than we might otherwise expect."

Plus homes remain more affordable in most markets than they were prior to the bust and will remain so, even if mortgage rates rise as they are expected to, she said.

The recovery is not nationwide; there are 17 markets tracked by Zillow which have yet to return to their peak value.

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