Type of Indices

CoreLogic has deep expertise processing large quantities of data and is capable of producing a hedonic index that is a timely, more reliable measure of property value change through time, and which is not affected by changes in the composition of the property stock.

The CoreLogic Home Value Index is a hedonic model. This index utilises comprehensive information on the attributes and characteristics of residential properties (such as location, land size, and bedrooms) to measure “quality-adjusted” changes in property value over time and to also impute the value of dwellings having a certain set of characteristics (but no current sales price) by observing the sales prices and characteristics of other dwellings which have recently been observed as selling.

The hedonic method has the advantage that it utilises attribute (or characteristic) information of each dwelling to help mitigate biases that are otherwise prevalent in median and repeat sales property price indices. Another important advantage of a hedonic imputation index is that its calculation frequency can be weekly and that it tracks the value of an entire portfolio of property, not just the prices of properties observed to sell in a given period.

All of CoreLogic’s hedonic indices, as well as any other products based on the hedonic methodology, are revised each month for 12 months inclusive following the initial reported date. This revision ensures the longevity of the historical index values by incorporating all relevant transactions into historical figures as they become available. However, this doesn’t compromise on the ability of the index to measure market turning points in a timely fashion, given that recent agreed sales are also fully utilised.