Fri, 03 Jun 2005
It looks like we're one step closer to being able to short real estate.
There's a company called HedgeStreet (Via The
Big Picture) which allows trading futures on housing prices and mortgage
rates. It's not quite the same as shorting a house as there's no underlying
asset being bought and sold, nor even an option on an underlying asset; rather,
it's basically a bet on which way prices (or rates) will go.
The web site is terribly slow so I haven't read all of the details. If it gets
significant volume, it may become a valuable tool for predicting future prices,
as markets
seem to be pretty good at this type of thing.
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