The CBOE Futures Exchange (CFE) announced Friday that it plans to launch futures contracts based upon median prices in the NATIONAL ASSOCIATION OF REALTORS®' existing-home sales data.Yikes! The NAR was the same people who produced the infamous Anti Bubble Reports.
Through a licensing agreement with NAR, CFE has created five new futures contracts designed to track the median price of existing-home sales nationally and in four distinct regions within the United States. CFE plans to launch the new contracts in the second quarter of 2006, pending regulatory approval.
“With the U.S. housing market valued at nearly $20 trillion, real estate is not only the hottest topic of conversation, it is an asset class unto itself that is arguably one of the most important segments of the U.S. economy,” said CBOE Chairman and CEO William J. Brodsky. “CBOE gave careful consideration to the development of this contract to ensure that it had practical application for hedging as well as speculating, offering a chance to participate in the real estate market to a wide range of investors — whether your outlook is regional or national, bullish, or bearish.”
“The launch of the NATIONAL ASSOCIATION OF REALTORS® Existing-Home Sales Median Price futures contracts marks an important milestone in the evolution of housing as an investment. Now investors, including home owners, real estate professionals, and companies in the real estate business, have a new way to participate in the housing market. In partnership with the CBOE, NAR is proud to be playing a central role in the creation of this new marketplace,” says Thomas M. Stevens, NAR president.
Monday, March 20, 2006
Real Estate Future Contracts
The CBOE Futures Exchange will be launching futures contracts based on NAR Data:
Posted by David at 4:54 PM