Altos Research debuted its new Altos Evaluate Forward Valuation Modeling today at the American Securitization Forum's annual conference.
The FVM can forecast changes in a property’s transaction price three, six, or 12 months into the future based on the strength or weakness of any given local real estate market. This improves loan and pool level analytics to have more precise asset pricing.
The FVM applies forecasting algorithms to Altos’ real-time, local market conditions data platform of critical, current, and market-specific leading indicators as well as HPI and transaction data to forecast the forward-looking asset value.
“Altos clients know that real-time housing data is vital to understanding distinct local markets and is rich with leading indicators of future home price changes. They’ve asked us to apply our analytical expertise to know more precisely how much to adjust housing asset valuations,” said Michael Simonsen, CEO of Altos Research. “That’s exactly what the FVM does. With the power of the FVM technology, you learn how much to discount, or increase, an asset's value in the coming year – and adjust your bids accordingly.”