powayseller, what you choose to invest in is completely your own business. I am merely suggesting that the disparity you claim to be witnessing between the leading indicators (a 10-20% decline) & lagging indicators, (such as the Case-Shiller Index), along with your strong belief of an accelerating crash would make CME housing futures/options a perfect outlet.

Their liquidity is irrelevant to your situation, if you can sell a few contracts or buy a few puts, even with a horrible spread, you would make a killing at settlement, *if* your leading indicators are correct. If your’re wrong, and realize it in time, then you do run the very serious risk of not being able to get out of an illiquid market, something I would assume a professional system trader, such as your advisor, would want to avoid. But, we are working under the premise that your data is a sure thing, and that prices plummet all the way to settlement…

I guess I’m just being overly sarcastic now. I’m glad you got out when you did. Even though I think the market will deflate for years vs. pop, and that all the RE data can be intepreted various ways, I wish you luck in your investments & eventual repurchase.