Investors expect steep price declines in some markets

Guest perspective: Housing-price futures trade on CME

Housing-price futures contracts expiring in August 2008 this week began trading on the Chicago Mercantile Exchange and investors appear to have taken all the recent bad real estate news to heart. Investors are expecting deep declines in many formerly hot markets with Miami expected to fall 9.4 percent, Las Vegas 9.2 percent and Los Angeles 8.4 percent by the end of the second quarter of 2008. Markets expected to fall the least are Chicago at 5.3 percent, Denver 6.6 percent and San Francisco 6.8 percent.