Empirical Examples

The purpose of this chapter is to provide additional empirical examples dealing with the construction of house price indices based on the methods that were outlined in Chapters 5-9. These are broadly defined as follows: measures of central tendency (mean or median), hedonic regression methods, repeat sales methods, and methods based on appraisal data. The following three sections of this chapter illustrate how the first three classes of methods can be implemented on very small data sets. Hopefully, working through these simple examples will enable readers to more readily follow the rather terse algebraic descriptions of the various methods that were provided in Chapters 5-9.