CoreLogic, the global property information, analytics and data-enabled services provider, announced on May 1 that it has augmented the CoreLogic Home Price Indices (HPI) and CoreLogic HPI Forecasts with the addition of Market Condition Indicators, enhanced analytics that identify individual geographic markets as “overvalued,” “at value” and “undervalued.”
Market Condition Indicators was added to CoreLogic HPI and CoreLogic HPI Forecasts as of April.
The new analytics establish long-term fundamental values for 300 Core Based Statistical Areas (CBSAs) based on real disposable income per capita. The Indicators assess whether individual markets are undervalued, at value or overvalued. An overvalued or undervalued market is defined as having a current HPI of 10 percent above or below the long-term fundamental value.
The Market Condition Indicators can be used by CoreLogic clients to help set custom risk levels to meet specific cases and risk assumptions. Market Condition Indicators are 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’s 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 that date back to 1976.
“Market Condition Indicators represent a new level of sophistication for market opportunity and risk analysis,” said 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.”
Subscribers to CoreLogic HPI and CoreLogic HPI Forecasts will automatically receive the Market Condition Indicators enhancement. Sample reports are available upon request.