Standard and Poor's to Launch New Real-Estate Product

For those that are just dyed-in-the-wool convinced that we're going to see the housing market come crashing down, this one's for you... From today's RealEstateJournal.com (WSJ)...

Investors who think the housing bubble is about to burst will soon be able to bet not only on when it will happen, but where.

Standard & Poor's, a unit of McGraw-Hill Cos., is rolling out 10 indexes that will track housing prices in various regions of the U.S., as well as a composite index. The indexes, which plan to launch in April, will serve as the basis for futures and options contracts that will trade on the Chicago Mercantile Exchange.

The contracts will allow investors to go long or short on a specific housing market -- that is, bet on it rising or falling in value.

Dubbed the S&P/Case-Shiller Metro Area Home Price Indices, the 10 cities comprise Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C.

The indexes will use calculation techniques developed by economics professors Karl Case and Robert Shiller (authors of Irrational Exuberance), such as repeat-sales calculations and a database comprised of home sales from a variety of sources, including lenders, multiple-listing services and public records. Data will be gathered continuously, and the indexes will be updated and published monthly, Standard & Poor's said.

You bet your house: Home price futures are coming [SFHomeBlog]
What Do Cheddar Cheese, Nonfat Dry Milk and Housing Have In Common? [Matrix]