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Online Bettors Find a New Love: Real Estate





HedgeStreet is a simple yet meaningful system of using collective wisdom, but it might be too much risk for my appetite.

From New York Times:

The higher that average ends up being, the more that the contract pays. So the contract's price tells you what investors, as a group, expect to happen. When the San Diego contract rises in value, it's because traders think the upcoming house prices will be high and the contract's payout handsome.

With real estate brokers in some cities reporting that home sales have recently slowed, it might be tempting to dismiss HedgeStreet's bullishness as yet another signal that the nation's love affair with real estate has become a dangerous obsession. Many economists - including Richard J. DeKaser, chief economist at National City, a large mortgage lender, who has compared home values to population and income in every large metropolitan area - insist that many home prices are irrationally high.

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