Analytics firm Altos Research this week unveiled a new product that will forecast changes in a property’s transaction price up to 12 months into the future based on the strength or weakness of the area’s local real estate market.

The product, AltosEvaluate Forward Valuation Modeling (FVM), debuted at the American Securitization Forum 2011.

The FVM uses Altos’ real-time, local market conditions data platform containing information about days on market, inventory, demand, price changes and other factors, as well as transaction data and home price index to forecast the future value of assets.

“Altos clients know that real-time housing data is vital to understanding distinct local markets and is rich with leading indicators of future home price changes. They’ve asked us to apply our analytical expertise to know more precisely how much to adjust housing asset valuations,” said Michael Simonsen, CEO of Altos Research.

He continued, “That’s exactly what the FVM does. With the power of the FVM technology, you learn how much to discount, or increase, an asset’s value in the coming year – and adjust your bids accordingly.”

The technology will predict the transaction price of a property three, six, or 12 months into the future. Altos actively follows and analyzes the active market, tracking over 400 components in 20,000 ZIP codes weekly. The FVM analyzes those metrics to determine which are most meaningful in future valuations in any given local market.

“We strive for greater clarity and insight for our asset management clients” said Ken Blevins, Jr., president and CEO of PMH Financial.

He continued, “Using the FVM lets us give our clients not only a current valuation, but also a view of how that home price is likely to change in the next three to twelve months.”