Baron Briefs

Trading of housing “binaries” returned to HedgeStreet today with three additional cities: Las Vegas, Denver and Washington, DC. That brings the total number of cities available for hedging and speculation to ten.

HedgeStreet’s website describes their hedging instruments as a way consumers can “speculate the degree to which their home will appreciate, or conversely, hedge against depreciation in the value of their home”. But I’d be willing to bet (no pun intended) they’d increase trading volume rapidly if they pitched to real estate agents as a way to hedge asking prices. For example, Joe Realtor could suggest a slightly higher asking price for a listing and place a bet against rising prices using HedgeStreet.

In any event, I think HedgeStreet is a cool idea and hope it gains more traction this year whomever the traders may be.

…pretty good if you ask me. This morning, I searched for homes with asking prices between $250,000 and $500,000 in 13 metro areas and compared the size of RealtyBaron’s RealSearchâ„¢ results with two real estate search leaders, Trulia and Propsmart. The results surprised me:

Atlanta	1,462	1,496	2,693
Boston	242	498	1,240
Chicago	2,420	10,023	9,199
Dallas	744	332	1,950
Denver	411	1,358	1,186
Vegas	5,050	3,264	3,336
L.A.	369	2,686	4,023
Miami	1,950	8,770	10,375
Phoenix	2,128	6,802	4,063
Seattle	298	3,470	751
S.D.	1,038	3,238	5,519
S.F.	75	468	1,186
D.C.	603	720	2,374
**NOTE: 15% added to Trulia numbers to account for no FSBOs in results.

Was this a scientific comparison? No, because it doesn’t consider the quality of the listing data. For example, Trulia’s or Propsmart’s search algorithms may exclude listings from their index if the listing is missing data points A, B, and/or C. As a result, the total number of their results would be lower. Regardless, it was nice to visualize how RealtyBaron’s RealSearchâ„¢ sizes up against the incumbents.