# How to Calculate Appreciation

Recently, CNN published an article on where home prices are rising fastest.  If you are studying for the real estate licensing exam, one of the real estate math questions you may encounter is how to calculate the estimated appreciation (or depreciation) on real estate.  In your local market, itâ€™s important to keep track of the appreciation (or depreciation) for various neighborhoods so you can keep your buyers and sellers up to date on the overall market activity in your area.

## Question #1:

For example, CNN reports that in Medford, OR, the median home price is \$144,000, with an estimated appreciation of 20.1% by 2013.  What is estimated appreciation through 2013?  What is the estimated median home price in 2013?

The appreciation is \$144,000 x 20.1% = \$28,944

Estimated median price is \$144,000 + \$28,944 = \$172,944.

## Question #2:

For example, CNN reports that in Billings, MO, the median home price is \$176,000, with an estimated appreciation of 10.1% by 2013.  What is estimated appreciation through 2013?  What is the estimated median home price in 2013?