Patent ID: 7822691
Filing Date: 2010-10-26
Classification: G06Q

Abstract:
1. A computer-implemented method for determining a real estate price index based on a repeat sales model, the method comprising the steps of: a processor executing in a first stage regression, regressing the difference in a log price of a second sale minus a log price of a first sale for a property on a set of dummy variables, each log price representing a time period except a base period; a processor executing in a second stage regression, using a quadratic formula to model, and estimate a dispersion of residual values with respect to time interval and determining a modified dispersion by determining a minimum dispersion value corresponding to a first point in time and a maximum dispersion value corresponding to a second point in time, wherein the modified dispersion is configured such that the dispersion value is not below zero at times less than, the first point in time and is held at the maximum dispersion value at times greater than the second point in time; a processor executing in a third stage regression, repeating the first stage regression using the inverse of the square root of fitted values from the quadratic formula from the second stage regression as weights; determining the real estate price index resulting from the first, second and third stage regressions; and storing the determined real estate price index in a computer memory.