"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," said Zillow chief economist Stan Humphries. "Double-digit appreciation rates do help to lift homeowners 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. We are already beginning to see moderation in the monthly pace of home value appreciation, which will be good for the market overall and in the long term."

Zillow expects home prices to rise another 5.2% in the year from August 2013 to August 2014.

-- Written by Shanthi Bharatwaj in New York.

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