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 … Read More
I sent this letter to participants in the Real Estate Derivative Summit being held in Zurich this week. While that was a conference focused on commercial real estate derivatives, and primarily focused on Europe, my sense was that there might be overlap between their goals and some of the work … Read More
UBS just updated their outlook of home price values in major cities around the world. (You can link here.) A major first impression is that while some publications question whether US prices are bubbling, the recent gains in home price indices in other countries (and they highlight Toronto … Read More
Quotes on the CME Case Shiller home price index futures are marginally higher this afternoon (relative to yesterday, and as measured by mid-market values) after this morning’s release of the Case Shiller indices. The biggest gain took place in the LAXX18 contract (where there was one trade today). DENX18 is … Read More
Quotes on the CME home price index futures were generally lower this morning (relative to last Friday) after the monthly release of the Case Shiller indices. The table below shows bids, offers and mid-market levels for the 11 Nov ’17 contracts. The mid-market values for the BOS, NYM and SFR … Read More
Inquiries from traders looking to hedge (sell) housing futures (or buy puts) continue to dominate. As such, I’m (unabashedly) putting forth an idea to try and bring in some interest from the long side (on forward contracts).
First, the graph below shows the closing prices on the Nov ’17 contracts … Read More
I posted a recap of activity in the CME Case Shiller home price futures contracts for June. You can access in the Reports section or via this link.
The 28-page report contains numerous tables and graphs of relevant information, including a section with graphs, prices and put option quotes … Read More