Hometrack says lenders are looking for an objective revaluation of portfolios to protect themselves in the current market.
Oliver Hughes, director of capital markets at Hometrack, says: “As the capital markets continue to be spooked and the larger indices show increasing volatility, large lenders and mortgage related investors are increasingly looking to AVMs to value their portfolios, reset LTV levels and identify areas of risk.
“As the housing market slows, lenders are looking for greater transparency and a better understanding of their assets.”
Hughes says that by using a high quality AVM, any sized portfolio can be quickly and cost effectively revalued enabling a truly objective and independent valuation.
He suggests Hometrack’s model, which utilises a complete data set, is proving robust at detecting price change at a local level.
He says this is key for managing and assessing portfolios as it is becoming increasingly clear that price changes are ever more localised.
Hughes adds:“Today’s market is forcing lenders and portfolio managers to assess risk and potential losses for each property or loan with greater accuracy. On an ongoing basis, an AVM is the only practical way to do this.”