Improving Market Knowledge
Veros’ proprietary home price index, VeroHPI is both an old and new offering from Veros Real Estate Solutions. Since the company was founded in 2001, this historical home price index (HPI) has been an integral part of many of the company’s proprietary analytic products and reserved for exclusive use in Veros-created tools. Among those are the company’s flagship automated valuation model (AVM), VeroVALUE, and the other AVM variations included in the VeroVALUE suite such as VeroVALUE REO, VeroVALUE Preferred, etc. VeroHPI is also used extensively in VeroFORECAST, the company’s future-looking residential real estate market forecast tool.
VeroHPI provides lenders, secondary marketers, servicers and analysts with direct access to robust trending logic. The index offers national coverage and is available at the CBSA (county-based statistical area) or FIPS (Federal Information Processing Standard) levels.
Development & Methodology
VeroHPI was developed and is maintained by expert statisticians, mathematicians, and econometricians. The index is constructed using a methodology that is widely accepted as one of the most accurate ways to determine residential real estate price changes - repeat sales models.
Repeat sales models are the foundation of VeroHPI, though the index also employs time series models where data indicates a repeat sales model does not provide the optimal fit.