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[CME Housing Index] Volume Remains Weak, Discounts Reduced, % Difference In 6 of 10 Markets Reduced

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.

Recap
Since nearly the beginning, Miami has lead all markets, now with 273 contracts, followed by LA with 192 and New York with 170 contracts (only 1 new contract since last week though). Denver remains on the bottom of the list with 18 contracts. To date, 1,109 contracts have been purchased with an open interest value of $67,550,518. Should we be concerned about the lack of activity? Probably not.

Pricing for the 10-city index shows a 4.64% price drop through May 2007 which, oddly enough is a slight improvement over the 4.82% decrease seen in that indicator last week. The price declines ranges from -2.39% (in Denver) to -6.58% (in San Francisco). All 10 cities showed lesser declines in this week’s figures over last week’s figures.



See archived posts in Matrix that cover the CME Housing Index [4]

Delayed Futures & Options Quotes (up to 10 min) [5]