The US-based powerhouse of property and consumer information, and data-enabled solutions, Corelogic, published its updated Home Price Index (HPI) Forecast Validation Report on 17th March 2021.
The study examines adjustments in national and main metro-level predictions from November 2019 to the genuine CoreLogic HPI, which covers details through November 2020.
What does the actual report convey?
- Seven of the top 50 most populated metro areas had a prediction within 1% of the fundamental home-price shift throughout 12-months.
- The National Index Forecast expected a 5.4 percent shift, but the eventual index value was 8.2 percent, resulting in a 2.8 percent gap.
- Unplanned demand rises due to reduced interest rates -fuelled by the coronavirus (COVID-19) pandemic, which significantly affected the estimations.
- The most reliable predictions were Los Angeles-Long Beach-Glendale, California; West Palm Beach-Boca Raton-Delray Beach, Florida; and Cambridge-Newton-Framingham, Massachusetts.
- The metro of Austin-Round Rock, Texas, had the most undervalued home price spike. According to anecdotal data, many high-tech firms migrate from highly-priced areas like San Francisco and New York to different places like Austin, resulting in price reductions in the former big states and a rise in the latter.
- Excluding the Orlando-Kissimmee-Sanford, Florida, which was on the most precise checklist in the November 2020 survey, all other large metropolitan areas on CoreLogic's top 10 most-accurate list are fresh to the CoreLogic index.
- The Bridgeport-Stamford-Norwalk area in Connecticut remains the most underrated mid-to-large market, while Fort Walton Beach, Florida, remains the most overpriced.
Established in 2010 with a market capitalization of $5.797 billion in the New York Stock Exchange, Corelogic has seen an unpredictably strong market fluctuation to date. Moreover, the pandemic has been very fruitful to the firm as it led Corelogic as the benchmark in estimating the stock prices.
The CoreLogic HPI Estimates publishes twice a year, and the housing price predictions focused on the CoreLogic HPI and other economic factors. With distressed sales, housing prices rose by 10% year over year in January 2021 contrasted to January 2020, and by 0.9 percent, month over month in January 2021 countered to December 2020. As per the CoreLogic HPI Forecast, property values will grow by 0.5 percent month over month from January to February 2021 and by 3.3 percent year over year from January 2021 to January 2022.