The national median home value was above $200,000 in June, breaking a barrier that was not reached during the housing boom.
Zillow's Home Value Index for June was $200,400, up 7.4% over one year ago. During the height of the housing bubble over a decade ago, the median U.S. home value peaked at $196,600.
The inventory shortage played a role in the increase as there were 11% fewer homes for sale compared with June 2016. The other factor was increased demand.
"The national housing market remains red hot and shows no signs of slowing, even as some local markets like the Bay Area have noticeably cooled," said Zillow Chief Economist Svenja Gudell in a press release.
"But even in areas where the housing market has slowed, home values are at or very near peak levels, selection is limited, demand is high and competition is fierce."
Cooled might be a relative term, as prices in San Francisco were up 5.7% year-over-year, and in San Jose they were up 5.9%. San Jose also had the largest drop-off in the number of homes for sale, down 39.4% when compared with June 2016.
There were four markets tracked by Zillow that recorded double-digit gains in home prices: Seattle, up 13.1%; Dallas-Fort Worth, up 10.5%; Las Vegas, up 10.2% and Tampa, Fla., up 10.1%. Paradoxically, the Dallas market had a 9% increase in the number of homes listed for sale.
Kansas City, Mo., had a 7.7% increase in inventory, while Portland, Ore., was up 4%.
Other markets with a significant decline in inventory were Columbus, Ohio, down 32.9%, and San Diego, down 32.5%.