Market Update: August 2023

What Parcl Traders Need to Know

• Seventeen tradable North American Parcl markets posted mixed returns in August. Average performance across all markets fell 0.3% vs. July in ppsft terms. This compares to -0.9% MoM in July and +1.8% in June.

• Some residential real estate markets, such as Portland, Austin, and Chicago, experienced meaningful price declines MoM, while Atlanta, Brooklyn, and Miami Beach were the MoM out-performers. The USA price feed was flattish at -0.1% MoM.

• Portland and Austin are the clear under-performers YTD (-7.6% and -1.5% respectively) and YoY (both down approx. 10%).  On the other hand, Boston remains the top performer in 2023, up 18.6% YTD and +17.5% YoY. Miami Beach (+11.0% YTD) remains the top YoY performer at +17.9% vs. August 2022.

• Total August open/close volume was over $120,000 USDC (over $500,000 in notional exposure), down slightly from the banner month of July but exceeding June by over 4x.

• Parcl traders exited August as long as they’ve been since late June; the aggregate split across all pools is 69% long / 31% short.

• Certain pools are notably skewed, however. Standouts are Miami Beach (~99% long, ~$71k OI), San Francisco (~96% long, ~$57k OI), Austin (~99% short, ~$43k OI),  and Seattle (~99% short, $10k OI).

• Total open interest (OI) across all Parcl pools is above $250,000 in USDC terms; the highest OI markets as of August 31st are Miami Beach, San Francisco, and Austin.

• Paris and Ile-De-France are the most recently launched markets on Parcl. Paris rose 1.1% MoM in August (vs. -0.84% in July), while Ile-De-France declined -2.6% (vs. -0.73% in July). Stay tuned for more global locations coming soon!

‍