Housing Bubble
Property valuation software forecasts increasing prices
March 10, 2003
IRVINE, Calif.--(BUSINESS WIRE)--Veros Software, developer of highly acclaimed VeroVALUE automated property valuations, introduced its expanded VeroFORECAST solution at the MBA Technology Show in Orlando, Fla.
VeroFORECAST provides mortgage lenders with future home price forecasts over a 12-month period. Home value forecasting is provided through the analysis of complex relationships between house prices and numerous economic variables using Veros' multiple predictive technologies.
"VeroFORECAST is a real breakthrough in analytic tools for advanced business forecasting," stated Darius Bozorgi, CEO of Veros Software. "Lenders will now be able to get property-specific or custom reports to help quantify market stability and risk while focusing marketing efforts. As you can imagine, this tool serves as an additional component in the development of our overall collateral score due out by the end of this year."
According to Eric P. Fox, vice president of technology at Veros, "Historic price models that rely on past price fluctuations to accurately predict future price changes are not very good at predicting several quarters into the future.
"Rather, by understanding and automating the complex relationships between price changes and numerous key economic indicators, we are able to understand how declining interest rates, increasing unemployment, a falling affordability index, a steady number of active listings and numerous other indicators will influence prices into the foreseeable future."
Based on current forecasts for the next year, VeroFORECAST continues to report increasing prices in most of the major metropolitan areas across the country. "In many of these areas, the rate of increase is beginning to or already has started to slip," stated Bozorgi.
"As an example, we anticipate that Orlando prices will see an approximate 7% increase over the year. On the west coast, most of Southern California should see increases of 13%-15%, while San Francisco prices will remain relatively flat in contrast to previous gains.
"Phoenix, Denver and Oklahoma City should experience more modest 4%-5% gains, compared to Cincinnati or Nashville that will see little if any gain. On the east coast, Buffalo and Boston should expect increases of 4% to 5%, respectively, while Baltimore should see prices rise approximately 10%."
VeroVALUE offers two forward-looking valuation products. The Basic product will give customers three- and six-month future price forecasts while the Advanced version offers price forecasts 12 months into the future and indicates the significant economic indicators responsible for driving the results.
