I mentioned earlier on my LinkedIn Group (CME Case Shiller home price futures) that I’ll be speaking this week at Babson College about these contracts. Between that, it being Patriot’s Day (a holiday in Boston when they run the Boston Marathon, among other things), and my desire to post a graph to the BostonBubble website page, I thought that I would provide a snapshot of the Boston market.
The BOS market has been somewhat orphaned for many months. There’s only 1 open interest (and that’s in the front May ’16 contract). I don’t get a sense of others weighing in with bids and offers. Those who want to make a very-wide geographical statement tend to gravitate toward the NYM contract (over BOS and WDC).
I’m surprised that there’s not more activity in BOS as: 1) there’s large young crowd that might want to buy a house a few years from now (who might consider buying futures against a pop in forward prices), 2) the move by GE to Boston should be impacting forward expectations, and 3) one of the rating agencies has observed that Boston seems more immune to economic downturns that other regions, yet forward BOS contracts closed (on a percent versus spot indices) lower than NYM and WDC (not shown here but can be viewed in monthly recap).
As with other contracts, I’m happy to facilitate trades (outright, calendar spreads, or intercity spreads vs. NYM or CUS). Feel free to contact me (email@example.com) if you have any questions or trading ideas.