In March 2006 the Chicago Mercantile Exchange and Tradition Financial Services, along with some other partners, launched the S&P CME Housing Futures and Options.

Much as futures and options allow investors to hedge their existing positions or speculate in investments like stocks, bonds, and commodities, S&P CME Housing Futures and Options enables people to manage the exposure of their real estate holdings (or speculate on the market). These futures and options also people to see what investors think the real estate market is going to do.

Per CNN, “these derivatives will enable investors to take a position on the direction of home prices either for the nation as a whole or for 10 major cities to start.” Washington, DC, is one of those markets.

Here are some useful sites if you’re interested in more information:

• Chicago Mercantile Exchange: Washington DC Contract Listings
• Chicago Mercantile Exchange: Washington DC Delayed Futures and Options Quote
• Matrix’s interpretation of the housing index