The WA offerings are also provided in bulk to large clients who receive all 78 million WA indexes
each month. WA provides house level indexes, forecasts and valuations on a match and append basis
for investors that hold portfolios of properties or mortgages.
This a report for one Metro area that includes graphing tools of the indexes
for single family homes and condos within the metro,
ten-year price history and one-year forecasts, an animation of value changes for all single family
the metro over an 18 year period, and Segmentation Reports. WA maintains over 300 Metro
reports that are updated monthly.
This a report for one 5 digit zip code that includes graphing tools of the
indexes for single family homes and condos within the zip code,ten-year price history and one-year
forecasts, an animation of value changes for all single family
the zip code over an 18 year period, and Segmentation Reports. WA maintains over 13,000 zip code
that are each updated monthly.
WA’s approach to understanding home prices is based on its unique ability to
track value changes at the house level. WA produces 78 million house specific indexes and forecasts
with monthly updates. Allan Weiss, the founder of WA created this novel approached after observing
the housing meltdown of 2008 and the damage it did.
In the mid-2000s, available price indexes did not warn of the impending crash until it was too late
because these indexes tracked the price changes of the average home in each market. As the most
vulnerable homes were declining in value the majority of homes continued to appreciate for another
year or two at a slowing pace. They could not see that the market had split with a growing number
of homes declining in value. If people could have seen the whole market at the house level the
growing peril would have been obvious.
WA created house level indexes and forecasts by treating each house
as a unique asset with an individually calculated index. WA produces each index with a database of
repeat sales of thousands of houses within the local market. However, unlike other index providers,
instead of pretending that each house in the market is identical and producing one index for the
entire market, WA overlays this data with characteristics such as the home’s age, size and
number of bedrooms from public records and the MLS. WA then focuses the repeat sales data on each house by
weighting the sales of the other houses based on their similarity to the subject house. The
resulting indexes distinguish value changes even for houses that are next door neighbors. For
example, a smaller newer house might be in high demand while the house next door is a larger older
house in lower demand. The WA index for the first house will rise while its neighbor will fall.
WA creates visualizations of the changing value of every house in the market to understand pricing
patterns at a deeper level and produce uniquely accurate home price forecasts. These visualizations
show that market shifts can begin with a small cluster of houses which grows in number and can then
expand like a weather front moving across a market. Houses that have not changed value direction
can be predicted to shift by observing the changes in the other houses in their proximity. Using
this method, WA accurately predicts 90% of the cases when houses that have been appreciating for
multiple years cease appreciating in the following year.