The Zillow home value index provides information about the median home price in an area on any given day. For any area, the price of half of its homes is below the Zillow home value index, and the price of the other half is above the index.
The ratio of the Zillow home value indices at two separate times provides information about the appreciation or depreciation of home prices. Zillow notes that homes in a given area can have high and low prices that affect the average home prices. The Zillow home value index is less susceptible to such extreme values than the average of the home prices.
Zillow uses its Zestimate home values to calculate the median price of homes in an area. The company uses public data and user-submitted data to calculate the Zestimate value of a home three times a week. The Zestimate value is not an official appraisal of a home’s price.
The Zillow home value index is available for the geographic area within a ZIP code, city, county and state as well as for the United States. Enter an address on Zillow’s website and click Zestimates & Charts under See Home Info to view the Zillow home value index for that area.