Neighborhood correlates of house price changes for the San Francisco Bay area are analyzed for the metropolitan area as a whole, and also for sub­ markets defined on the basis of real estate board jurisdictions, the racial­ ethnic composition of neighborhoods, and the average house price of neighborhoods. Regression analysis reveals different patterns of correlates for the market and submarket models, and an F-test indicates that the board of realtors submarket model is superior to the other models in accounting for variance in price change. These findings suggest that sub­ market models should be used in the analysis of housing, but only if submarkets are carefully defined to bound areas which are likely to show discrete attribute-price structures.