San Diego County real estate transaction data was evaluated with a set of linear models calibrated by ordinary least squares and geographically weighted regression (GWR). The goal of the analysis was to determine whether the spatial effects assumed to be in the data are best studied globally with no spatial terms, globally with a fixed effects submarket variable, or locally with GWR. 18,050 single-family residential sales which closed in the six months between April 2014 and September 2014 were used in the analysis. Diagnostic statistics including AICc, R², Global Moran’s I, and visual inspection of diagnostic plots and maps indicate superior model performance by GWR as compared to both global regressions.
