H
ome value growth has slowed nationally, but pockets in the Midwest and Northeast continue to see double-digit growth. According to Cotality's latest home price index insights report, Decatur, IL leads the nation with 12.4% annual home sales price growth.

    Affordability, continued demand, and scarcity of inventory are driving superior growth in top markets. Markets that saw continued demand without corresponding rebounds in inventory saw the highest surge in prices. Realtor.com's Hannah Jones notes that affordable markets across the country continue to garner attention from home shoppers, pushing up competition and home prices.

    At the state level, Illinois had the highest annual home price growth at 6.4% year over year, followed by Rhode Island, New Jersey, Wyoming, and Connecticut. Midwest markets such as Indianapolis, Kansas City, MO, and Knoxville, TN, continue to outpace their pre-pandemic trends in May due to affordability.

    However, these hot markets don't signal an overall hotness in prices nationwide. Year-over-year price growth dipped to 1.8% in May, down from 5% last year and the slowest since winter 2012. High interest rates and home prices are pulling sales trajectories downward.

    The top 10 markets with double-digit price growth year over year include:

    * Decatur, IL: 12.4%

    * Weirton, WV: 12%

    * Duluth, MN: 11.9%

    * Glens Falls, NY: 10.6%

    * Muncie, IN: 10.6%

    * Parkersburg, WV: 10.5%

    * Charleston, WV: 10.4%

    * Bridgeport, CT: 10.2%

    * Lewiston, ID: 10.2%

    * Lewiston, ME: 10.1%

    These markets are driven by affordability and proximity to urban centers or natural attractions, such as lakes and rivers.