HOUSING DERIVATIVES

Altos Research June 2009 US Housing Report

Altos Research has published its June 2009 Real-Time Housing Report.  Of note:

• The Altos Research 10-City Composite Index rose 2.6% in May and 4.8% during the most recent three month period.

• Prices increased in 23 of 26 markets with 22 markets showing three months of sequential price increases.
• The Altos 10-City Composite continues to highlight a shift in properties available on the market. The market has experienced some turnover at the low-end (two years after the first sub-prime collapse) while new properties on the market are shifting to the higher-end.
• Across the 10-City Composite Index markets inventory fell by 0.2% during May and 1.7% over the most recent three month period.

Australian Property Derivatives - Listed Contracts Coming

The ASX will launch Australian property derivatives later this year.

Altos Research May 2009 Real-Time Housing Report

The

Altos Research Real-Time Housing Market Update for May 2009 is attached for your review.

Eurex Strikes Its Biggest Property Derivatives Trade

Eurex, Europe's largest derivatives exchange, traded its largest ever property derivatives contract.

Housing Data Looks Backwards Into The Future? (Do Futures Look Backwards?)

Ira Artman looks at the latest housing pending sales statistics with an eye both backwards and forwards.  (Link courtesy of MortgageNewsClips.com).

If we could only see housing prices forward with a commodity market that prices the NAV of housing.....

RPX Monthly Housing Market Report - February 2009

Radar Logic has posted their February 2009 market report.  The big news is that transaction counts are up over 20% for the total 25 MSAs that are in the matrix. 

Recession Comparisons - US Housing Affordability

David Leonhardt of the The New York Times published an analysis showing the changes in home prices to income (affordability).  The East and West Coast cities have the most volatile affordability metrics.  The chart in the article has wonderful scroll-over functionality.

What's Next For Housing Prices ?

Ira Artman analyzes what is moving housing prices.  His model uses a Hunter S. Thompson metric to expose the moving parts.  Download Greed_Fear_And_Loathing_Ira_Artman.

US Housing Prices Mixed - Altos Research

Altos Research is reporting its April 2009 Real-Time Housing Market Update.  Of note is18 of 26 markets are showing price increases.  Housing supply is still growing at a firm rate.

New System Of Home Ownership

Susan Smith, Professor of Geography and a Director of the Institute of Advanced Study at Durham University, believes the time is right for creating a public-private partnership to make effective use of housing derivatives.

"Using housing derivatives (based on house price indexes), home buyers could trade lower housing outlays against future gains, first time buyers could buy in stages, and owners could recoup part of their investment in times of need.

Such instruments could be used to:

• Reduce the costs of entry to the housing market, enabling first-time buyers to take out smaller loans at a low rate of interest;
• Insure home equity against slumping prices;
• Allow people in arrears to swap future price appreciation for a lump sum to reduce their loan (and perhaps stave off repossession);
• Help home owners balance their investments.
• Provide renters with an opportunity to buy into future house price appreciation if they want to.

Professor Smith said: “In this new system a family in financial trouble could remain in their home with less cost and less distress than at present.”"

Source: 24Dash.com