Thousands of lenders, investors and other industry players rely on home price indices for vital insights on housing market trends – yet there are some limitations to legacy indices that diminish their value at micro-market levels.
The Radian Home Price Index (HPI), provided by Red Bell Real Estate, LLC, a Radian company, is an answer to an industry-wide need for a more accurate, timely and granular view of patterns and trends in the U.S. housing market.
Available within days of month’s end, Radian HPI provides a complete view of trends in real estate markets across the entire U.S. housing stock weeks sooner than other indices.
The Radian HPI evaluates nearly 70 million individual properties every month, providing a density of information that allows consumers, businesses and government entities to analyze housing markets at micro-market levels without concern of volatility or thinness of data.
In contrast, most legacy indices only measure repeat sales, which represent a small fraction of the U.S. housing stock with only 400,000 unique monthly observations.
Radian HPI is based upon proprietary valuation modeling, which leverages multiple advanced methodologies driven by artificial intelligence and machine learning.
The index can be accessed via a cloud-based data visualization platform, which provides monthly updates to more than 100,000 unique indices. The library of indices is created from the intersections of property attributes and geography, across nine different geographic dimensions from the national level down to zip codes.
“The Radian HPI is based on data that comprehensively captures the housing market, making the development of granular indices possible without sacrificing stability or accuracy,” Radian CEO Rick Thornberry said.
With a highly flexible engine, custom index creation and portfolio surveillance have never been easier. Using Radian HPI, lenders can research market trends, create tracking portfolios for benchmarking, enhance appraisal and BPO quality controls, price large portfolios, and evaluate risk management and governance activities quickly and comprehensively.
Investors who use the index are able to replicate their investment strategy with custom indices, forecast home prices at granular levels, evaluate risk and opportunities in target markets and inform listing or purchase decisions with confidence.
“The Radian HPI is an excellent example of leveraging proprietary analytics to power new products and services for our customers and the broader housing markets,” Thornberry said. “Many have commented that, based on the granularity of the data, the Radian HPI is the most comprehensive and useful library of indices they have seen in the market.”
Steve Gaenzler, SVP, Data and Analytics
Steve Gaenzler has spent 25 years at the intersection of technology and the housing industry. Gaenzler aims to disrupt the property valuation, title and real estate markets using machine learning and artificial intelligence. At Radian, he is developing tools for the next generation of automated and augmented valuations.
Katie Brewer, SVP, Valuation Operations
Katie Brewer possesses a depth of experience in the default servicing industry, including collections, loss mitigation, regulatory compliance, valuations operations and REO management over her 16 year career. She ensures the quality, performance and delivery of Radian’s valuation services.
Michael Dziuba, SVP, Valuation Sales
Michael Dziuba has been with Radian for 19 years in various capacities, including senior vice president of Capital Markets Sales, National Field Sales Manager and senior vice president of National Business Development Sales. He helps Radian’s clients reimagine their valuation strategies, incorporating the best-in-class products and services Radian has to offer.
