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Blog Entries by Bin He

CoreLogic Home Price Index Can Be Used to Mark Down Distressed Properties

Use discount factors to improve your portfolio mark-to-market results

Bin He    |    Property Valuation

Figure 1 Illustration of applying discount factor to distressed property

The industry often uses the CoreLogic Home Price Index (HPI)TM to estimate fair market values between sales transactions.  While this methodology can deliver reasonable valuation estimates for standard properties and transactions, distressed properties, such as real estate owned (REO) and short sales, typically sell at a discount to this estimated value.  CoreLogic has...

Quantifying the Riskiness of an Individual Property

Bin He    |    Property Valuation

Month Over Month percentage change

A previous CoreLogic Insights blog – Measuring Real Estate Portfolio Risk Relative to the Housing Market– applied the Capital Asset Pricing Model (CAPM) to a real estate market using the CoreLogic Home Price Index (HPI) to approximate a portfolio’s beta. Beta measures the risk of a property...

Take a Peek into the Future Housing Market

Using pending sales as a leading indicator of sales activities and house prices

Bin He    |    Housing Trends

It’s well understood that even great economists can’t predict the future of home prices. But can pending home sales prices offer a preview into what home prices will do? A CoreLogic analysis indicates that just might be the case. A listing on a home becomes “pending” when an offer is accepted and a contract is signed, after which it takes, on average, one to two months...

Reading the Tea Leaves

Will home prices in the San Francisco market continue to increase?

Bin He    |    Housing Trends

Home prices in the San Francisco area have been rapidly increasing since early 2012, reaching year-over-year appreciation rates of more than 20 percent in early 2013. Since then, home prices have continued to increase but at a slower pace. Figure 1 shows the CoreLogic Home Price IndexTM (HPI) and year-over-year change for the San Francisco market. It shows that the HPI has...

Measuring Real Estate Portfolio Risk Relative to the Housing Market

The Application of the Capital Asset Pricing Model in Residential Real Estate Markets

Bin He    |    Housing Policy, Property Valuation

Measuring the risk level in a portfolio of real estate assets relative to the overall market is challenging because there are many factors that need to be accounted for, such as the appreciation of the housing market, the correlation of various geographic areas and the geographic concentration of the portfolio.

“Beta” is a metric derived from the Capital Asset Pricing...

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