Global Decision has created the Global Decision Irvine Hedonic Home Price Index which calculates the quarterly value of Irvine home values over time, based on an underlying hedonic (multiple regression) approach. Our approach is motivated by the fact that median home values are distorted heavily by changes in the mix of the underlying homes sold. We present our June 2011 results (as compared to Case-Shiller) below:
We compare the Irvine Hedonic Home Price Index trend against the LAOC Case-Shiller tiered indexes. Irvine is considered a premium area, relative to even the LAOC upper third that comprises the Case-Shiller High Tier, and the home price index results reflect that fact.
Whereas the Case-Shiller LAOC Top-Tier has fallen about 30% since the 2006 peak values, the Irvine Hedonic Home Price Index has fallen only about 15-20%.