1. What is the Percentage Increase Formula?

The percentage increase formula calculates the relative increase between two values, showing how much a value has grown compared to its original amount. For house prices, it helps track market trends and property value appreciation.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• New Average Price — Current average house price
• Old Average Price — Previous average house price

Explanation: The formula shows what percentage the new price is above the old price. A positive result indicates an increase, while a negative result would indicate a decrease.

3. Importance of Price Increase Calculation

Details: Calculating house price increases helps homeowners understand their equity growth, assists buyers in evaluating market trends, and supports investors in making informed decisions about property investments.

4. Using the Calculator

Tips: Enter both prices in the same currency. The old price should be from an earlier time period than the new price. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What time period should I compare?
A: Common comparisons are year-over-year or quarter-over-quarter, but any meaningful time period can be used depending on your analysis needs.

Q2: How accurate is this for individual properties?
A: This calculates average market increases. Individual properties may appreciate differently based on location, condition, and other factors.

Q3: Should I use median or average prices?
A: Median prices are often better for housing markets as they're less affected by extreme values, but this calculator works with either.

Q4: What does a negative percentage mean?
A: A negative result indicates price depreciation (decrease) rather than appreciation (increase).

Q5: How does this account for inflation?
A: This shows nominal increase. For real (inflation-adjusted) increase, you'd need to use inflation-adjusted price figures.