CoreLogic recently augmented its home price index (HPI) report and related forecasts with the addition of market condition indicators – enhanced analytics that identify individual geographic markets as ‘overvalued,’ ‘at value’ and ‘undervalued.’
The new analytics establish long-term fundamental values for 300 core-based statistical areas (CBSAs) based on real disposable income per capita.
An ‘overvalued’ or ‘undervalued’ market is defined as having a current HPI of 10% above or below the long-term fundamental value.
In addition, clients are provided data so they can set custom risk levels to meet specific cases and risk assumptions.
Market condition indicators is available at the CBSA-level for single-family residential properties, including and excluding distressed properties. The data for the model will be updated monthly and reported within five-weeks of month-end. Each report will contain a 60-month market condition indicators forecast for the top 300 CBSAs, as well as historical indicators for those markets back to 1976.
‘Market Condition Indicators represent a new level of sophistication for market opportunity and risk analysis,’ reports Olumide Soroye, managing director, CoreLogic. ‘It is the logical progression of our CoreLogic HPI forecasts and addresses the sustainability of pricing trends in specific markets. We are excited to bring this to our existing and prospective CoreLogic HPI clients, and to add it to the extensive foundation for leading market insights from CoreLogic.’