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.
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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