CoreLogic has a highly accurate and timely suite of world-class property price indices that have transformed the way Australians measure and understand changes in the value of residential real estate.
The hedonic regression is a method used to calculate the patented CoreLogic Daily Home Value Index. This methodology seeks to overcome the issue of compositional bias associated with median price and repeat sales measures. The premise for this lies in hedonic theory which says that the value of a composite good, such as a house, is the sum of its components. Thus, by separating the sample of houses into their various structural and locational attributes, the differences in these qualitative factors across houses can be controlled.
Hedonic imputation is a method of imputing the value of dwellings having a certain set of characteristics (but no current sales price) by observing the sales prices and characteristics of other dwellings that do have recent sales prices. To learn more about the methodology used in the CoreLogic RP Data Daily Home Value indices please refer to the following studies, which have been published in the interests of transparency:
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