Potential home buyers could've used CME Case Shiller home price index futures to hedge against the risk that the income needed to afford a home might rise between Jan 2020 and Jan 2024.
Continue reading →Presentations of average (or median) home price to median income can be misleading as it involves averages of averages. Income inequality may explain part of the rise in home price/income ratios.
Continue reading →A review of the last four years of closes on the CME Case Shiller regional home price index contracts shows the benefit of "long hedging" to those worried about upside price moves.
Continue reading →Another expiration of quarterly contracts prompts me to review the concepts of cash-settlement and convergence, this time with some third-party forecasts.
Continue reading →While all home price index methodologies are unique, the results of these differences may range from small to large. I conducted a review of seven indices to see the correlation across all.
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