Tracking home prices goes big business
The dramatic collapse and recovery of home prices in recent years has stoked interest in the fate of housing, cultivating new fans for wonky price indexes formerly tracked mostly by the slide-rule set.
A company that provides much of that data has just completed a $750 million shopping spree, making it the 800-pound gorilla of real estate numbers.
In addition to producing its own monthly price index, CoreLogic of Irvine, Calif., owns two other leading brands: The Case-Shiller home price indices and DataQuick Information Systems.
But the acquisition binge included much more than home-price trackers.
CoreLogic bought a leading provider of building replacement costs, two operations that track flood zone locations and a firm that forecasts disaster risks for property owners around the globe.
The combined operations give CoreLogic the ability to sell clients information about almost any property's past, present and future, said Olumide Soroye, CoreLogic's managing director for information solutions.
“This really is about a lot more than just the (home price) indices,” Soroye said. “It's about the gold standard of data we can offer the industry on properties and their life cycle.”
The acquisitions enhance the databases and analytical tools CoreLogic already sells. Those include technology to detect fraud and provide information on real estate transactions, mortgages, collateral, payment histories and property locations and features.
The firm's 10 biggest clients — mostly top banks — account for 29 percent of its revenue, the company has reported in public filings. Other clients include mortgage lenders and brokers, investors, real estate agents, insurance companies, property managers and government-sponsored enterprises such as Fannie Mae.
Last year, CoreLogic generated $1.3 billion in revenue, $591 million from its data and analytics division.
As money from services for mortgage lenders declines amid rising interest rates, CoreLogic is trying to increase revenue from the data and analytics side of its business.
“Builders and developers are interested. Lenders are interested. Hedge funds are interested,” observed Bill McBride, author of Calculated Risk, a housing and finance blog followed by economists. “Clearly it has to provide good revenue for them. That's a big part of their business.”
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- ‘Word people’ could start careers as court reporters, medical scribes
- Small stores take big gamble by not upgrading credit card readers
- Stop neighbors from stealing your Internet
- Yahoo investors losing patience with ‘star’ CEO Marissa Mayer
- Amazon raises bar for other retailers with same-day delivery
- Shopping beacons join list of ‘next big thing’ disappointments
- Many Black Friday deals not worth the hassle
- Nutritional supplement makers, led by GNC, want to create voluntary safety standards
- Covestro leader MacCleary finds stability amid change
- VW adds 75,000 vehicles to emissions cheat scandal
- Pfizer acquires Allergan in $160B deal