Housing Futures – Way to protect against the bubble?
I’m surprised I haven’t seen this article discussed by the local housing blogs (Seattle Bubble / Rain City).. Anyhow, this past weekend the Sunday New York Times had a real estate magazine and one of the articles was on the introduction of housing futures, The Pork-Bellies Approach to Housing. Now I had a hard time grabbing a good one paragraph quote but here’s something that will hopefully get you to click through and read the whole article:
If the ultimate goal of a housing futures market is to dampen the boom-and-bust cycle of the real estate market, then the most important players may not be individual home buyers but developers, home builders and banks. Which is to say, not people who buy homes but the people in the business of supplying them. The big problem with real estate, after all, is that it takes so long for supply to respond to rising prices.
I think the idea is really interesting from both the micro perspective (how can I hedge my housing bets) and from the macro perspective (how will this futures market affect the overall market)
Unfortunately, Seattle is not yet a part of the exchange.