National home values have increased 8.7 percent since last April to a median value of $215,600, according to Zillow.

The pace of appreciation is the fastest since June 2006, when home values were rising nine percent annually.

“The spring home shopping season has been a perfect storm of strong demand and tight supply,” said Zillow senior economist Aaron Terrazas. “Sluggish new construction has exacerbated the supply situation and homes that are hitting the market, are moving very quickly once they do. Americans are also in a spending mood, boosted by recent tax cuts and rising wages.”

Read more in Bloomberg.