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The property and analytics company has launched a new model that predicts property listings, which will be made available to brokers.
Speaking to The Adviser, CoreLogic has confirmed that the newly launched Propensity to List retention solution will be made available to aggregation and broker groups as well as banks and other lenders.
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The new model identifies a targeted segment of home loan customers who are likely to list their home for sale within the next three months and is designed as a tool for banks and lenders to engage and retain their customers “earlier in their decision journey”.
Propensity to List model utilises a host of data inputs, such as search and activity data from various platforms, transfers, listings data, and market trends data, CoreLogic confirmed.
The top predictors of the model include:
• Looking for comparable sales for the property prior to the actual listing event happening
• Looking for property details
• Selecting comparable listings
• Some of the core property attributes (coming from our property database)
Subscribers to the model will receive a targeted segment of their home loan customers who are likely to list their properties within the next three months, every month.
CoreLogic head of banking and finance solutions Eugene Vassiliev said the model recognises attrition risks early to assist retention teams to engage customers at high risk of churn before they make a financial decision.
“We know engaging at the right time is one of the greatest retention challenges for banks and lenders,” Mr Vassiliev said.
“Customers that list for sale are both at a very high risk of attrition and an opportunity to retain for the next, likely more substantial, mortgage.
“However, by the time the property is actually listed for sale, customers would generally have already made up their mind about their future financing needs and the opportunity for the current lender to engage and retain them is lost.”
At a macro level, homes across regional Australia are more likely to be listed for sale over the next three months compared to the capital cities, according to CoreLogic research director Tim Lawless.
Mr Lawless added that by the end of May, the model revealed 2 per cent of regional homes were likely to list for sale before the end of August 2023, up 1.3 per cent from a year ago.
In addition, 1.2 per cent of capital city properties were likely to hit property listings over the next few months, down 1.6 per cent from a year ago.
“Across the regional markets, Western Australia stands out with 2.8 per cent of homes likely to list for sale over the coming months, with the council areas of Capel (5.0 per cent), Bunbury (4.7 per cent), Boddington (4.6 per cent), and Port Hedland (4.6 per cent) topping the list with the highest portion of properties likely to list,” Mr Lawless said.
“Properties located in the ACT have the highest likelihood to be listed for sale across the capital cities over the coming months, with 2.5 per cent of homes likely to list by August, followed by Perth with 2.0 per cent of properties likely to list.”
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