Wednesday, June 01, 2005

RE Futures

Now you can 'invest' in future contracts on various local median house prices at hedgestreet.com. Bet house prices will go up, or bet houses will go down. More information at www.hedgestreet.com . This is a solid concept. However, right now the Hedgestreet housing market is pretty inactive. I'll be keeping my eye on Hedgestreet.
Posted by David at 2:25 AM

4 comments:

  1. AnonymousJune 01, 2005 3:18 AM

    It looks like the hedges are more illiquid than the housing market.

    Housing futures will never work. How are the market makers going to hedge against them? Are we just going to rely on speculators for liquidity?

    If this thing takes off, I see it as an addition trigger to the bubble burst.

    ReplyDelete
  2. DavidJune 01, 2005 9:03 AM

    The market makers maybe would be speculators who do not have enough money or credit to bet on the real thing. On second thought, anybody can get a RE loan now.

    ReplyDelete
  3. AnonymousJune 02, 2005 2:56 AM

    David, this blog is great.

    Keep up the good work!

    HedgeStreet can also be used as an predictive indicator.

    For example, the "AUG San Diego > $628,000" Yes/No hedgelet is significantly more expensive for "No" than "Yes". This means that the market is predicting that the median home price in SD will probably not exceed 628K.

    ReplyDelete
  4. DavidJune 02, 2005 9:07 AM

    Thanks P. :-)

    ReplyDelete

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