HouseCanary Data Points Part IV: Market Analysis

Home price indices (HPIs), rental price indices (RPIs), and other market-level Data Points from HouseCanary provide a wealth of insights to inform your real estate-related decisions. Our market-level data helps evaluate investments and explore new markets for expansion across the real estate industry, including Single Family Rental (SFR), Fix and Flip, real estate lending, and the secondary mortgage market.

This article is part four of a four-part series. Explore how to use HouseCanary’s property valuation data and analytics to make wiser business decisions with HouseCanary Data Points Part I: Valuation. Discover other ways HouseCanary can support your business in HouseCanary Data Points Part II: Forecasting and HouseCanary Data Points Part III: Rental Analysis.

Data Points on market outlook

Compare housing markets broadly, and get a granular look at growth within markets of interest, with increasingly localized HPIs. HouseCanary generates HPIs for state markets, metropolitan statistical areas (MSA), metropolitan divisions (metro div), and down to the ZIP code level. 

These Data Points inform you about market-level factors that can impact home values over time, providing a window into the desirability of any market. Across all markets, HouseCanary’s proprietary home price forecasts explain more than 95% of historical variability in price changes (R2>0.95%). HouseCanary’s dataset captures deep histories, in some areas as far back as 20 to 40 years, with the aim of providing information covering at least one full housing cycle. That dataset gives our machine-learning models an edge in reliably assessing local market volatility and forecasting future risk. 

  • HPI Historical — HouseCanary’s proprietary returns history based on ZIP-level HPI
    • historical compound annual growth rate (CAGR) for 1, 5, 10, and 20 years
    • sale value appreciation based on HPI for the last 1, 5, 10, and 20 years
  • HPI Forecast — HouseCanary’s proprietary returns forecast based on ZIP-level HPI
    • forecast compound annual growth rate (CAGR) for 1, 2, and 3 years
    • forecast home price appreciation based on HPI forecast for 1, 2, and 3 years
    • historical max percent loss in HPI over any 12-month period 
    • risk that this market’s HPI will be lower in 12 months
  • HPI Time Series Historical  — HouseCanary’s monthly HPI history for the state, MSA, metro div, and ZIP code
  • HPI Time Series Forecast  — HouseCanary’s monthly HPI forecast for the state, MSA, metro div, and ZIP code

Data Points on market details and risks

HouseCanary reports affordability information as the fraction of median household income needed to maintain median home payments on a 20% down, 30-year fixed rate mortgage.

Our granular data helps you zoom in to find the fastest-appreciating neighborhoods within hot markets, taking a deeper dive into markets with Details at MSA and ZIP code levels. We offer a proprietary Market Grade for the desirability of a particular ZIP code, taking into account median household income, job market, homeowner-to-renter ratio, and more.

  • Affordability Time Series Forecast  — monthly forecast of affordability values for state, MSA, metro div, and ZIP code
  • Affordability Time Series History  — monthly history of affordability values for state, MSA, metro div, and ZIP code
  • Details — returns and risk information at the ZIP code and MSA levels
    • historical compound annual growth rates (CAGR) for 1, 5, 10, and 20 years 
    • indexed home price appreciation for the last 1, 5, 10, and 20 years
    • historical max percent loss in HPI over any 12-month period
    • risk that a market’s HPI will be lower in 12 months
    • ZIP-level market metrics for single-family and multi-family homes
    • Market Action score of ZIP-level supply and demand
  • Market Grade  — HouseCanary’s letter grade for a ZIP code within its MSA
  • Volatility — HouseCanary’s metric identifying ZIP-level market volatility based on HPI

Look ahead with HouseCanary

HouseCanary’s forecasting tools support all kinds of real estate operations, from tracking changes in familiar markets to identifying new opportunities. These highly accurate HPIs and insightful market analytics provide the information you need to drive your real estate business. Check out our comprehensive API documentation to see what else we have available.

Interested in more info about the HouseCanary family of home valuation tools? Click to find out more.

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