The one thing that’s certain in the housing market at this time is uncertainty. With rising interest rates, tight inventory and fears of recession, will we see a housing market crash? And if the bubble bursts, will it burst everywhere?
CoreLogic has created Market Risk Indicators to help businesses better plan for the future and to help companies avoid some of the missteps that caused so much damage during the previous financial crisis. Market Risk Indicators also provide mortgage professionals with the tools they need to mitigate their risk in select metropolitan areas that may experience home price downturns.
Market Risk Indicators are designed to tell users the chances of a housing price decline within specific metro areas. CoreLogic provides two separate severity probabilities – more than 10% decline and less than 10% decline. The higher the probability, the higher the risk.
CoreLogic has one of the nation’s most in-depth and comprehensive property databases. The company has combined this information with data from IHSMarkit (now a part of S&P Global), one of the industry leaders in economic forecasting.
By analyzing more property data and economic trends, Market Risk Indicators are able to provide better insight into metro-level trends and can provide it in a format that is easily consumable. Data is available in 392 Core-Based Statistical Areas (CBSAs), all 50 states and Washington, D.C.
Market Risk Indicators specifically taps into the economic trends that provide a holistic picture around housing analytics and homeownership affordability within a market. Examples of these are: Gross Metro Product, Unemployment, Consumer confidence, Population, unique housing supply side and distressed market analytics, and many more.
Previously, clients would need to purchase and analyze housing and economic data separately – models that analyzed both would need to be built and maintained in-house. That effort represented a massive financial outlay without the same level of certainty.
Market Risk Indicators took all of those expensive, time-consuming processes and combined them into a single deliverable that’s more cost-effective, easier to understand and backed by the best housing and economic data in the industry.
With Market Risk Indicators, clients no longer need to spend hundreds of thousands of dollars and countless resources to develop their own models. Instead of taking “shots in the dark,” strategic decisions about investment, risk and policy can be made using reliable, targeted data.
Now, when a business is planning for expansion into new markets or looking to buy a pool of loans, they can get reliable market risk information to help them improve their decision-making processes, take advantage of opportunities and avoid the areas of highest risk.
Users of Market Risk Indicators appreciate that they receive a fully revised set of data every month and the in-depth level of data provided. Those insights are given on a metro level, giving clients the ability to correlate and quantify risk levels so they can plan accordingly.
Want to know more? Contact CoreLogic at 866-774-3282.
