I wonder if the abandonment of strong dollar policy by the FED will cause the inflow of foreign money into our real estate as their money gains strength. I believe the dollar may continue to slide and the FED may pause in raising rates which would weaken the dollar. As USD drops the EURO, YEN, etc. rise. By making our money worthless housing prices would stabilize but in inflated dollars so true money would be lost just psychologically less severe and by keeping rates flat or less severe raises perhaps they are trying to deflate the housing bubble?
CME Housing Products to Launch on Monday, May 22nd. To sign up for more information, click here. While other industries, such as agriculture and the financial markets, have access to a wide range of financial risk management tools, such tools have not been available to the housing industry â until now. CME is continuing its tradition of innovation with the creation of the first comprehensive products to hedge risk in real estate â CME Housing futures and options. These products provide opportunities for protection in down markets, and extend to the housing industry the same financial tools that previous CME innovations have brought to agriculture and finance. By providing a means of hedging exposure to home prices, they can diffuse the potential impact of sustained declines in housing prices. In addition, they: * Create a new means of risk transfer to a broad range of investors * Have the potential for fostering stability in the housing industry * Provide an innovative way to participate in the real estate market without having to buy and sell properties Based on the S&P/Case-Shiller (CS) Home Price Indexes, CME Housing futures and options are cash-settled to a weighted composite index of U.S. real estate prices, as well as to specific markets in 10 major U.S. cities: Boston, Miami, New York, San Diego, San Francisco, Washington, D.C., Chicago, Denver, Las Vegas and Los Angeles.
Update. 1 Year later, photos of For Sale signs appear every single day on newspaper business section front page, and behind reporters on TV news and CNBC. However, I no longer see any where near the level of For Sale signs or luxury cars anymore.
That's what is so funny... I'll be with a client who's applying for a mortgage and they are listing assets, and they'll be like 55-60 years old listing $50-100K in their 401K, and they are saying it like it's a lot of money... They say it all extra proud like that amount is what they have in their checking account or something, not their LIFE SAVINGS. heh heh Funny how much of a shock they'll be in for when they realize $50-100K ain't nothing to live off if you have no other source of income...That's like 2-3, maybe 5 years of living at an average level. The 5 years is assuming no debt, which is obviously not going to be the case if they are applying for a mortgage this close to retirement. lol Peoples' reasoning in general kills me sometimes. Hilarious. LOL
Very true...and due to the bubble popping in progress, millions have/will have negative net worth. Like this guy... "About eight weeks ago one of our laborers asked our field technician for a ride to the Ford dealer in the next town. Apparently his 3-yr/old pick-up truck was in for some expensive repair work. The field technician said that the work wasnât covered by warranty, and the laborerâs two credit cards were refused at the service counter after being swiped into the scanner. Solution? The laborer walked over to the sales floor and bought a Lincoln Navigator! No $hit, just like that, and the pick-up truckâs $30k loan was rolled onto the back end of the new loan just like magic." OWP