Typically, home values increase over time and grow 3-4% each year in healthy, sustainable markets. However, home values are constantly changing depending on buyer demand and local market factors such as the amount of inventory, bidding wars or economic changes in the area. Local market conditions are the best indicator of projected (short-term) home value appreciation. Your Zestimate is updated regularly to keep up with fluctuating home values, making it an excellent resource for a free home value estimation. Review the history of your Zestimate and/or the Zillow House Value Index (ZHVI) for your neighborhood in order to to examine house value appreciation in your local market.