Market Risk Indicators provides probability of decline over 12-month period
A new tool to predict probability of a home price decline over a 12-month period has been launched by CoreLogic.
Market Risk Indicators is an analytics product covering the top 392 metros along with all 50 states and DC, developed by the team behind the CoreLogic Home Price Index.
“With a majority of economists predicting an economic downturn in the next 18 months, it’s more critical than ever that mortgage professionals understand where potential market pitfalls may lie,” said Ann Regan, executive, Collateral Solutions for CoreLogic. “Market Risk Indicators can help originators better set market strategy and help investors better manage their loan portfolios without spending hundreds of thousands of dollars collecting and analyzing the data on their own.”
Using the firm’s data and information from IHS Markit, users will get two different score probabilities for each metro area and state – the probability price decline of less than 10% and the probability of a price decline of 10% or more.
“We are already seeing several markets at risk for price downturns over the next 12 months, and we expect the risk to spread to other areas over the course of the next several months,” added Regan.
