With competition fierce as potential sellers hold onto their homes waiting for mortgage rates to drop, home values are on the rise, and Boston homes are no exception. 

From June to July, Boston home values climbed higher than most areas, according to a new Zillow market report, which ranked Boston in the top five for home value growth during that period. 

The average home price in Beantown rose 1.3% from June to July to $662,736. Year over year, the price was up 1.7%. 

That increase was higher than the national average, which climbed 0.9% month over month and 1.4% year over year to $349,679. Compared to February 2020’s pre-pandemic level, the national average home price was up 46%. 

Rising home values are attributed to limited listings for prospective homebuyers due to rising mortgage rates and more potential sellers staying put. 

The number of new Boston listings was down 33.3% from last year, while total inventory fell 32.1% year over year and was 53.5% below 2019. 

Nationally, inventory also trended downward in July, falling 15% from a year before and dropping 44% from July 2019 levels. 

“Buyers should not expect to see many more homes available for sale on Zillow at any time this year than they do now,” said Nicole Bachaud, Zillow senior economist. “Inventory will decline from here if it follows pre-pandemic trends.”