Dive Brief:

• Home prices increased by 3% in May when compared with May 2014, although they remained at nearly 9% lower than the peak set during the housing bubble, according to a report by Zillow.

• Denver home values outpaced those in other metros, growing 14.7% year over year, the report said. Florida metros didn’t fare as well: Prices in Tampa, Miami-Fort Lauderdale and Orlando remained more than 30% below their peak.

• Rents outpaced home values in 20 of the 35 largest metro areas; in some metros, rents skyrocketed as home values increased only modestly. Over the next year, the growth of home prices is likely to slow to 2.2 percent.

Dive Insight:

Zillow Chief Economist Stan Humphries said the improving pace of home values is a sign that the housing market is transitioning from "stimulus-driven" to "one driven by fundamentals."

He said the switch "is a good thing in the long-term" and indicates the housing market is becoming "more normal" as the housing recovery progresses.