The data for this study were provided by a local real estate agent in Fargo. The information detailed all houses sold in the Fargo-Moorhead area between 1 February 2004 and 31 July 2004. Two different samples were used in this study. All houses that were sold in Fargo and Moorhead were used for the first regression, with the exception of the few that had incomplete information. For the second regression, the sample had to be reduced due to the fact that not all the addresses were available and they were needed to determine the neighborhood effect. There were also observations from West Fargo, North Dakota and Dilworth, Minnesota in the second sample, so the location variable in the second regression refers to whether the house is in North Dakota (Fargo or West Fargo). Descriptive statistics pertaining to the first data set are given in Table 2