Chicago Mercantile Exchange (CME), along with noted economist Robert Shiller’s MacroMarkets, Fiserv and Standard & Poor’s, have created a market exchange for futures and options contracts on home prices in ten cities in the United States. The data feed from the index is provided to Matrix from Tradition Financial Services (TFS), a broker that executes housing futures and options.
Miami leads all markets with 266 contracts, followed by LA with 188 (why LA?) and New York with 169 contracts. Denver is on the bottom of the list with 13 contracts (none sold for several weeks). To date, 1,064 contracts have been purchased with an open interest value of $65,055,830. Still not a lot of activity.
Pricing for the 10-city index shows a 4.82% price drop through May 2007 which is a slight decline over the 3.75% decrease seen in that indicator 2 weeks ago. The price declines ranges from -2.97% (in Denver) to -6.95% (in San Francisco). All 10 cities showed declines in this week’s figures.
Tags: Robert Shiller