VeroHPI
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
VeroHPI
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
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.
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Features
The reasons for the stubbornly low housing supply
The housing market situation is fundamentally different from that during the great recession of 2008. One of the key reasons why house prices have not declined significantly is because of the very low inventory of homes available for sale. There were fewer than one million existing homes available for sale in January 2023 compared to over 3 million in any month during 2007-2008.
Pending home sales display buyers’ response to fluctuating mortgage rates
High home prices coupled with high interest rates made purchasing a house increasingly unaffordable. As a result, demand for home purchases fell. Pending sales across the United States decreased by over 40% from mid-June to the end of 2022.
Mortgage Metrics Today Versus the Great Recession
In this short article, we look at three different consumer mortgage metrics when comparing the economic conditions today to the Great Recession over a decade ago.
