I am moving to and buying a home in the San Francisco bay area
(renting is not a viable financial option due to a corporate housing
subsidy) but am a little afraid that I may be entering the market near
the peak. I was wondering what kind of financial/ other instruments
are available to individual investors that can act as a hedge against
declines in the housing market (understanding that nothing will give
100% protection).  Two that I have researched are:

1.	Housing futures that are being traded on the Chicago Mercantile
Exchange (http://www.cme.com/trading/prd/env/housingover16250.html )
but these are relatively new Instruments, sparsely traded, and don?t
extend beyond one year.  I wasn?t even clear how individual investors
could purchase these
(http://www.mortgagenewsdaily.com/6162006_Real_Estate_Options.asp)
2.	Shorting or buying put options on REITs that have a very large
portion of residential bay area real estate.  (I am not aware of any
specifically)

Good answers will have other viable suggestions or will expand greatly on
what I?ve explained above.  Great answers will also have specific
?actionable? items (ex- for a $1MM house you can purchase xxx for $xx
and limit your 3-5 Year potential loss to $xx)


Other Search Keywords: Housing Bubble, Real Estate, Hedges, Hedging, Futures,
Silicon Valley

Dude, buy in a nice neighborhood with good schools and minimal crime
where the folks keep their places pretty. You'll be fine.

If you aren't gonna stay there more than 7 to 10 years, you'll be
exposed to downturn pressures no matter what. Rent out the place to
cover the nut and ride out the downturn. It's a great way to increase
your holdings.

Frisco isn't Houston, Detroit, Cleveland, Wheeling, or similar
cities-- one trick ponies (oil, cars, manufacturing, mining). Nor is
it Denver, Helena, or Elko (why those places exist is beyond me). It
has a ridiculously wide-based economy, glorious weather, and no reason
to leave except for rising prices.

You're going there-- don't you think everyone else wants to as well?