A reader explains the basics of home price hedging

One reader -Justin Welsh- wrote an 11-page description of why a homeowner might want to consider hedging with home price futures.  Justin’s report goes into a lot of detail, provides a number of graphs, and walks through various scenarios.  The report has quite a bit of detail.   I’ve attached it here (as received, without any editing) for your consideration.

Anyone wishing to contact Justin can do so at justinlw@earthlink.net

I’d be happy to take other contributions that relate to the topic of hedging home price risk.

Thank you Justin for your effort, and your insights.