Property derivatives made simpler

Guest perspective: How to make bets on future home prices

LIVE NOW: Inman Connect San Francisco
Tune-in now to catch the livestream. Don't miss this chance to see real estate leaders tackle the industry's top problems.

Until recently, if you thought housing prices were headed for a fall in your market, your only choice was to sell your property or ride it out. With the introduction of property derivatives such as futures contracts traded on the Chicago Mercantile Exchange or OTC-traded options, professional investors can now effectively make bets on the future direction of residential housing prices.

But what about the rest of us who don’t work at a hedge fund?