HOUSING DERIVATIVES

Australian Property Derivatives - Listed Contracts Coming

The ASX will launch Australian property derivatives later this year.

Eurex Strikes Its Biggest Property Derivatives Trade

Eurex, Europe's largest derivatives exchange, traded its largest ever property derivatives contract.

New System Of Home Ownership

Susan Smith, Professor of Geography and a Director of the Institute of Advanced Study at Durham University, believes the time is right for creating a public-private partnership to make effective use of housing derivatives.

"Using housing derivatives (based on house price indexes), home buyers could trade lower housing outlays against future gains, first time buyers could buy in stages, and owners could recoup part of their investment in times of need.

Such instruments could be used to:

• Reduce the costs of entry to the housing market, enabling first-time buyers to take out smaller loans at a low rate of interest;
• Insure home equity against slumping prices;
• Allow people in arrears to swap future price appreciation for a lump sum to reduce their loan (and perhaps stave off repossession);
• Help home owners balance their investments.
• Provide renters with an opportunity to buy into future house price appreciation if they want to.

Professor Smith said: “In this new system a family in financial trouble could remain in their home with less cost and less distress than at present.”"

Source: 24Dash.com

Australian Residential Housing Index

The Business Spectator reports that housing prices in Australia are rising.  The ASX will launch housing derivatives contracts in August.

Australia Bourse To List Housing Contracts

The Australian bourse operator, ASX Ltd, is slated to roll out six contracts in May or June, allowing bets on the Australia All Dwellings Index and on home price indices for Sydney, Melbourne, Brisbane, Perth and Adelaide.

Future UK House Prices - Tradition Property UK

Tradition in London published their January 2009 Tradition Future HPI Report.  This data uses the settlements of the traded UK housing derivatives market to create UK housing prices.  Download Tradition-Future-HPI-Jan-2009 

UK Commercial Property To Halve In Value Say Derivatives Markets

Mortgage News reports that the UK commercial property market will lose 50% of its value from it's 2007 peak.  This figure is derivatived from the property derivatives markets in the UK. 

Derivatives Show UK Home Prices To Halve

Two stories in the UK press highlight the falling prices for homes in the UK:

Daily Express December 30, 2008

 

The Independent December 28, 2008

 

IPD To Launch UK Residential Index

The IPD is launching a UK residential housing price index.  I trust they have followed the US housing derivatives history closely.      ; )

Eurex To Launch UK Property Contract

Deutsche Boerse's derivatives exchange Eurex is planning to launch Europe's first property futures market in February 2009, based on Britain's largest UK commercial properties index.