New models pool groups of CBSAs with similar characteristics
Collateral Analytics has released the next generation of its home price models which provide price forecasts for nearly 400 CBSAs and 10,000 ZIP Codes. These are based on the underlying drivers of home prices which Collateral Analytics has found to be employment and household income growth.
A key enhancement of the new models is the pooling of groups of CBSAs with similar characteristics such as those with more rapid economic growth and/or those experiencing higher demand from international buyers.
The new models have been used to generate five year forecasts for seven different scenarios including baseline scenarios which are built upon expected economic conditions, as well as both adverse and severely adverse scenarios following the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) stress testing program.
These will be used to update and support a number of CA Products that incorporate predictions of future home price paths which include HomePriceTrends, CA Value Forecast AVM, and the CA Credit Risk Model.
“Improving the process to estimate future home prices is an ongoing process for us,” says Michael Sklarz, President and CEO of Collateral Analytics, a leading provider of comprehensive automated valuation solutions and real estate analytic products for large lenders and the financial services industry.
Two articles about the new home price forecasts are available at: collateralanalytics.com/news-research/
Links with information about the Collateral Analytics products that use or will use these predictions are available at:
• HomePriceTrends
• Home Price Forecast
• HPI
• HPI Forecast
• Credit Risk Model