In March of 2006, the Chicago Board Options Exchange announced the launch of housing futures contracts. Futures are a highly speculative investment strategy. The National Association of Realtor® sales statistics will be used to chart the contracts.
The program gives investors a vehicle for participating in the $20 trillion US real estate market through the purchase of contracts whose yields are based on the direction of home prices, nationally or regionally.
The program gives anyone with a stake in real estate – lenders, home-builders, home-owners and real estate practitioners a chance to enhance or protect their real estate investments through the same hedging strategies available to Wall Street investors. Largely untested, it’s hard to know how this strategy will be received.
The program gives investors a vehicle for participating in the $20 trillion US real estate market through the purchase of contracts whose yields are based on the direction of home prices, nationally or regionally.
The program gives anyone with a stake in real estate – lenders, home-builders, home-owners and real estate practitioners a chance to enhance or protect their real estate investments through the same hedging strategies available to Wall Street investors. Largely untested, it’s hard to know how this strategy will be received.
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