Price Security for Home Sellers

asked the same question a-g,
I can't understand why people aren't all over this with inquiries. It is a bears biggest impediment to buying. Now it's gone.

There is another thread on this. In addition to the counterparty risk (is the entity offering this insurance going to be able to honor it?) one also needs to consider inflation. I assume that the insurance provided shields against nominal price increases not real price reductions. Even moderate inflation does add up year after year making this insurance less relevant beyond the first few years, barring a dramatic real state price collapse or significant economy-wide deflation. Both seem unlikely but not impossible events ie something people may well want to insure against.

Correction: the third line should of course read ". . . the insurance provided shields against nominal price DECREASES not real price reductions."

the index is made by themselves. can end up being pretty self-serving imho. homeowners that need to sell might not care about the average loss in the zip code but their own loss if the home value is higher than avg in that zip code.

I don't think it's the biggest impediment, SteveF. The biggest impediment is the opportunity cost: If you wait 2 or 3 years, you might be able to get an even better apartment at the same price. People take that risk with buying computers and MP3 players all the time, but housing is a much bigger-ticket purchase, so people are likely to be more cautious.

Of course inflation is also a big risk, which cuts the other way. However there are other (better) ways to protect oneself against inflation.

yes Post87, but the risk is applied the other way. The more likely scenario that you may have to pay a much higher price 2 years down the road.

Obviously I disagree, Steve, though you are entitled to your opinion. It seems to me NYC real estate prices are still historically very high right now when measured by economic factors such as inflation, population growth and GDP.