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[CME Housing Index] Miami Cold, Chicago Hot (Less Cold)

Chicago Mercantile Exchange (CME) [1], 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 [2]. The data feed from the index is provided to Matrix from Tradition Financial Services (TFS) [3], a broker that executes housing futures and options. Here’s a great article on how it works. [4]

Its been a few months since I covered the index because of the light activity.

Miami continues to lead all markets, followed by LA(still, why LA?), New York and San Francisco. Chicago showed the lease activity with Denver close behind.. To date, 1,520 contracts have been purchased with an open interest value of $90,273,665.

Pricing for the 10-city index shows a 7% price drop through August 2007 which is a decline over the 4.82% decrease seen in that indicator 2 months ago. The price declines ranges from -5.7% (in Chicago) to -8.6% (in Miami). All 10 cities showed declines in this week’s figures.

TFS has started to included OFHEO swaps. It makes sense that OFHEO would be used since its such a widely read indicator and the official market position of the US government. More stuff to gamble on, I suppose.

See archived posts in Matrix that cover the CME Housing Index [5]

Delayed Futures & Options Quotes (up to 10 min) [6]