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Blog Entries by Bin He

Is Flipping Coming Back? Part I

National Flipping Activity in Q1 2016 is Well Below its 2005 Peak

Bin He    |    Housing Trends

Flipping is the term used when an investor purchases a property, renovates and repairs it, and then re-sells it within a short period of time for a profit. Flipping was at an all-time high before the housing bubble burst because of easy access to credit and speculation for higher home prices. Now home prices have been appreciating at a relatively high rate for almost four years, and in fact,...

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...