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I'd like to hedge against my neighborhood home value. I'm not terribly concerned if the overall housing market fluctuates, since if I move and sell my home for less, I can buy a new home for less. I'm more concerned about evening out local fluctuations.

Is there such a hedge?

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    @ChrisInEdmonton I briefly considered highlighting the fact that this is not the same question as that one, but figured it really should be self evident to the careful reader. Thank you for being the straight man and for pointing out the difference. – glenviewjeff Apr 23 '13 at 18:58
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    Glen - the Home Equity Insurance that Shiller proposed never really took off. In theory, you'd be able to buy or sell an index based on a state's home price level. You are seeking even better granularity, changes in your neighborhood. Sorry, that's not going to happen. The Shiller proposal is interesting but even that may never happen. – JoeTaxpayer♦ Apr 23 '13 at 19:42
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    Basically you're looking for someone to commit to buy your house above the market price. Now why would anyone do that? – littleadv Apr 24 '13 at 3:49
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    @littleadv Re: "why would anyone do that?" ... perhaps for the same reason people take on an obligation when they write stock options: for a premium. The issue here is there's no exchange, no market, no standard contract or clearing. But, the concept to me looks like an option of sorts. – Chris W. Rea Apr 24 '13 at 12:39
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    @littleadv - the proposed instrument is a derivative. Presumably, there's a price for everything. You have a $100K house? Someone will accept your $2000 to guarantee that in a year it won't be worth less than $90K. Not really. The market is too regional, and the derivative market demand may not exist, but in theory, it can be discussed and fleshed out. – JoeTaxpayer♦ Apr 24 '13 at 14:37

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