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How is neighborhood appreciation calculated?

April 26, 2017appreciation calculated NEIGHBORHOOD

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How is neighborhood appreciation calculated?

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Appreciation is an increase in the value of property (or many properties) in an area. On Zillow.com, appreciation at all levels of geography (ZIP, county, state, nation) is based on the Zillow Home Value Index (ZHVI). This is the median Zestimate for that geographic region on any given date. Cumulative appreciation is the simple ratio between today’s ZHVI and the ZHVI for a reference period (e.g., the ZHVI one, five or 10 years ago).