Analysis reveals 12-month, National Forecast is within 0.1 percent of actual HPI increase—
CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its latest CoreLogic HPI Forecast Validation Report that compares its 12-month CoreLogic Home Price Index (HPI) Forecast to the actual CoreLogic Home Price Index. The report compares the changes in national and key CBSA-level forecasts made in November 2017 to the actual HPI index, which includes data through November 2018.
The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. National values are derived from state-level forecasts by weighing indices according to the number of housing units for each state.
The report showed:
- The national forecast prediction of a 4.7 percent increase was within 0.1 percent of the 4.8 percent increase of the HPI for the 12-month period ending in November 2018.
- The most accurate CBSA-level forecast was for the Cambridge-Newton-Framingham, MA area, which at 5.5 percent came on target of the actual HPI increase of 5.5 percent.
- The widest CBSA gap was in San Diego, CA with a 6.4 percent over-estimation of actual increase (10.4 percent forecasted vs. 4.0 percent actual). CoreLogic noted that the variance in this under-valued CBSA was due to a downturn of overall demand, combined with a concern over long-term affordability.
- Among the 10-most accurately forecasted major MSAs, nine areas had forecasts with less than a 1 percent difference from actual values.
- Severe inventory shortages and rising interest rates impacted the forecasts of several MSAs, reflecting the overall market volatility of the past 12 months.
“The latest HPI Forecast Validation report continues to demonstrate why CoreLogic is the gold standard when it comes to home price forecasting,” said Ann Regan, executive, product management for CoreLogic. “Despite an extremely volatile market, our forecasts were still able to provide terrific insight into the overall housing economy, providing HPI clients with the reliability they need in the current market.”
CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit stage.corelogic.com.
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