I’ve posted a recap of activity in the CME Case Shiller home price index futures for February in the Reports section, or you can link here.
Activity remains very quiet, and price have been stable, despite huge gyrations in the stock market.
Key points from the Feb recap include:
–There were 3 futures contracts traded in February in 2 regions across 1 expiration. There were no options trades.
–Activity remains slow with most bid/ask activity in the SFR contracts.
–For Feb, bids and offers were mixed across regions. Bid/ask on expirations tightened slightly (except Feb ’19).
–New front contract (K18) bid/ask spreads are about typical with 3 months to go, except SDG.
–OI on futures and options fell as 6 futures and 17 options contracts expired.
–Forward implied HPA are falling, and very mixed across contracts. (I sense that forward prices are biased lower by an imbalance of hedgers vs. natural longs).
–Growing interest from option buyers.
–New home price index futures contract for Paris to be rolled out this summer.
Please feel free to contact me (firstname.lastname@example.org) if you have any questions from this report, or on any aspect of hedging home price indices.