Spatial Analysis Methods for Changes in Home Values?

Discussion created by deisman on Nov 18, 2011
I want to conduct a spatial analysis of home values over a period of five years. The research area for this analysis is a county with mostly suburban and some urban development. I have two data sets, a point data set with  assessed values for all parcels in the county for every year from 1997-2002, and a polygon data set with median and mean sale prices for each neighborhood in the county from 1997-2002. My goal is to see how proximity to transit stations effects home values i.e., do home values increase at a greater rate in areas near transit stations than in other area. For the purposes of this analysis I am defining transit stations as heavy or light rail stations.  

My question is, what spatial analysis method(s) or tools within ArcGIS should I use to conduct this analysis? Any advice or insights would be greatly appreciated.