I’ve posted a set of tables and graphs for the 11 CME regions (the 10-city index and the 10 components). You can find it in the Reports section, or link here.
The HCI (10-city index) package is shown below and is organized with:
- A table (upper left) of recent quotes on each of the 11 expirations. Prices are converted into percentages versus spot index levels,
- A graph (upper right) showing quotes on the same graph as the historical Case Shiller index (in black). Note that the slope is positive, consistent with higher index levels,
- A graph (lower right) that compares YOY changes in the Case Shiller index versus bids and offers from calendar spreads. This graph illustrates that forward YOY prices might be consistent with declining, but still positive HPA expectations.
- Sets of tables (lower left) with suggested offering levels on a variety of puts and calls.
Feel free to contact me (email@example.com) if you have any questions on this blog, or any other aspect of hedging home price indices.