I’ve been watching the housing futures on the san diego market, but am not quite sure what to make of them. I assume there is no capital required upfront to purchase one of these? If there is, the lost interest income would cause the actual forecasted depreciation to possibly be greater than what is implied by the absolute decline in the Case Shiller index.
If anyone knows what I’m talking about and can answer this, I’d appreciate it. It could make a material difference to what the market is saying (which I calculate at a 3 % decline between now and may-229 vs. 222.8)
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