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How to Short a House
Posted By Barry Ritholtz On June 2, 2005 @ 9:54 am In Real Estate,Trading | Comments Disabled
One of the comments that came up repeatedly on the Housing is Not a Bubble  column was the assertion that "You cannot short a house." As in the stock market, the lack of "informed short selling pressure" removed a source of supply that theoretically) would dampen price rises.
Only now, it turns out to be no longer true.
These new Housing Price "Hedgelets"  are benchmarked against the National Association of Realtors reported median sales price of existing single-family homes in the cities mentioned above. There’s also a hedge which can be put on on 1-yr ARM or 30-yr FRM Mortgage.
So now you can sell a region of Homes short . . . just not individual houses.
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/06/how-to-short-a-house/
URLs in this post:
 Housing is Not a Bubble: http://biz.yahoo.com/ts/050526/10225437.html?.v=3
 Trend Following: http://www.amazon.com/exec/obidos/ASIN/0131446037/thebigpictu09-20
 Hedge Street: http://www.hedgestreet.com
 "Hedgelets": http://www.hedgestreet.com/hedgelets/selectasset.html
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