Wednesday, November 08, 2006

New look -- Housing futures

Bear market in housing futures - Nov. 2, 2006

Investors and homeowners can now trade financial securities to hedge their exposure to real estate. I believe this will lead to the ability to sell houses with "downside protection."

Right now the contracts are limited to price changes over 12 months. I believe the timeframe for these securities will stretch out to 5 and then 30 years and these instruments will serve as price insurance for homebuyers....removing some of the hesitancy to purchase due to buyers desire to time the markets.

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