Enter the initial and final house price into the calculator to determine the change in house price. This calculator can also evaluate any of the variables given the others are known.
House Price Change Formula
The following formula is used to calculate the change in house price.
ΔP = P2 - P1
Variables:
- ΔP is the change in house price ($)
- P1 is the initial house price ($)
- P2 is the final house price ($)
To calculate the change in house price, subtract the initial house price from the final house price. The result will be the change in house price. If the result is positive, the house price has increased. If the result is negative, the house price has decreased.
What is a House Price Change?
A house price change refers to the fluctuation in the cost of purchasing a residential property over a specific period of time. This change can be influenced by various factors such as the state of the economy, interest rates, supply and demand, and location. The house price change can either be an increase, indicating a rise in property values, or a decrease, suggesting a drop in property values. This is a crucial indicator for both buyers and sellers in the real estate market, as well as for economists and policymakers.
How to Calculate House Price Change?
The following steps outline how to calculate the House Price Change.
- First, determine the initial house price (P1) ($).
- Next, determine the final house price (P2) ($).
- Next, gather the formula from above = ΔP = P2 – P1.
- Finally, calculate the House Price Change (ΔP).
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Initial house price (P1) ($) = 250,000
Final house price (P2) ($) = 300,000
