You’re a dumbass
You dumb, op
Op probably watched “The big short” and is emphatic to the main character.
There are no financial instruments AFAIK that are specific to the Bay Area housing market. If your belief is steadfast, then you may exercise short positions through the equities market, by purchasing put options against financial institutions (lenders), home builders, and Bay Area focused REITs. I must advise, that multiple short positions through these various industries which underpin the Bay Area housing is a incredibly risky activity. Don’t bet the farm.
Thank you so much. Very helpful. I've been trying to find a pure play on Bay Area residential, but no luck. Thanks again.
What? It’s too late to short.
The blind knowledge of real estate and financial markets has come to this. You cannot directly "short" real estate unless you create a market for it. There are REIT shorts available such as Proshares REK, Proshares SRS (2x), and Direxion DRV (3x) for overall REIT shorts. There is no specific instrument for shorting a particular area that I know of, you can indirectly do it via shorting stocks of heavy SF property holders ie. Developers, property management companies, commercial real estate etc. You can also short lenders who have significant exposure to SF via mortgages. Shorts are risky and specific industry shorts are very risky and basing your short on "it cannot go any higher" or "it just feels overvalued" tends to end in tears. 2008 is a very unique scenario and likely not to repeat for a long time. 2000 real estate drops are more likely where other economic factors contributed to the drop in housing prices.
Borrow a house, sell it immediately, then when the market crashes buy it back for a lower price and return it to the owner. Boom, you just sorted Bay Area housing.
Market research and forming an investment thesis is different from trade execution. Sit down, buddy!
Why?
For the same reason people short equities.
Real estate is not an equity