How to Short a House

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.

Michael Covel, author of Trend Following, points us to Hedge Street, where you can select distinct cities to short median home prices on a regional basis:

Los Angeles
New York
San Diego
San Francisco

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.

Category: Real Estate, Trading

Bad Weather Had No Impact on Retail Sales

Category: Retail

PMI disappoints

Category: Economy

Massively Multiplayer Online Games Explosive Growth

Category: Finance, Music, Web/Tech

Short term Frothiness could lead to an Intermediate Top

Category: Markets, Trading

MPAA does the heavy lifting RIAA refused to do

Category: Film, Music, Politics

More Gadgetry: Archos 700

Category: Film, Music, Television

Turn Your iPod into a video player

Category: Film, Music

I picked Deep Throat!

Category: Media, Politics

Looking for the Next Catalysts

Category: Markets, Trading