Market Update: July 2023

What Parcl Traders Need to Know

• Seventeen tradable North American Parcl markets posted mixed returns in July. The average return in residential real estate prices (ppsft) was -0.9%, the first MoM decline since January. This compares to +1.8% gains in June and +1.9% in May.

• The lone standout in July was Austin, TX, rising 4.8% MoM, and nearly recovering its -5.1% decline in June. Austin was the worst performer of all Parcl markets in June by a wide margin. Austin is still down 10.4% from July 2022, and is 12.3% off its all-time high.

• Former YTD leader Boston, as well as Miami Beach, and Atlanta posted the largest declines in July, down 5.1%, 4.8%, and 4.7% MoM respectively. Chicago is now the lone YTD leader at +18.7%.

• July was the largest month on record for opened positions on Parcl, exceeding the prior monthly high water mark (set in June) by over 5x.

• Parcl traders are slightly net short, with the aggregate split across all pools 42% long / 58% short. Pools have largely remained within +/- 10ppts of evenly skewed since late June.

• Certain pools are notably skewed, however. Standouts are Austin (~91% long, ~$39k OI), Miami Beach (~91% short, $33k OI), and Atlanta (~87% short, $17.5k OI).

• Total open interest (OI) across all Parcl pools exceeded $200,000 in USDC terms earlier in July; highest OI markets as of August 1st are Austin, Miami Beach, Atlanta, and San Francisco. OI now sits at ~$140k, down slightly from July’s mid-month update.

• Paris and Ile-De-France are the newest tradable markets on Parcl. Paris fell -0.84% in July while Ile-De-France declined -0.73%. Stay tuned for more cities coming soon!