new indexes that track home prices
If you thought that you have heard it all, think again. According to a article by Globeandmail.com, the S&P will roll out indexes that track home prices in 10 U.S. cities, and a composite of all the indexes. They will be the basis for housing price futures and options contracts that will launch on the Chicago Mercantile Exchange (CME) around April 26. The 10 cities are Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C.
The CME believes that these options will be an easy way for institutional and retail investors to get real estate exposure and diversify their portfolios. They have already received tremendous interest from mainly institutional investors about the product. Additionally, the CME hope that their product, in the future, may help people essentially insure the value of the house.
What do you think?