What Parcl Traders Need to Know

• Seventeen tradable North American Parcl markets are up 0.2% MTD in ppsft terms. This compares to August’s 0.3% decline and July’s 0.9% drop.
• MTD leaders include Atlanta (+3.2% MTD), Denver (+2.7%) and Miami Beach (+2.4%). Laggards are Washington DC (-3.0% MTD), and Philadelphia (-2.2%). Boston (down 1.3% MTD) hangs on to the lead in YTD performance at +17.0%, followed by Chicago at +14.0%.
• Parcl traders returned to balance in aggregate; the net split across all pools sits at 48% long / 52% short. Certain pools are notably skewed; namely Miami Beach (~99% long, ~$71k OI), Washington DC (~99% short, ~$81k OI), Denver (100% long, ~$62k OI).
• Total open interest (OI) across all Parcl pools exceeded $275,000 in USDC terms this week, an all time high. Highest OI markets as of September 15th are Washington DC, Denver, and Miami Beach.
• Paris and Ile-De-France are the newest tradable markets on Parcl. Paris has risen 0.2% MTD (vs. +1.1% in August) while Ile-De-France has declined -0.7% (vs. -2.6%). Stay tuned for more global locations coming soon!

The state of real time real estate prices

Residential real estate prices have recovered 0.2% MTD in ppsft terms. This compares to August’s 0.3% decline and July’s 0.9% drop.

MTD leaders include Atlanta (+3.2% MTD), Denver (+2.7%) and Miami Beach (+2.4%). Laggards are Washington DC (-3.0% MTD), and Philadelphia (-2.2%).

Boston (down 1.3% MTD) hangs on to the lead in YTD performance at +17.0%, followed by Chicago at +14.0%. YTD losers include Portland (-6.9%), Washington DC (-0.7%), and Austin (-0.3%).

Only four of 17 markets are outperforming the USA Price Feed YTD (+11.6%): Boston, Chicago, Miami Beach, and Brooklyn.

Atlanta is the only market at all time highs. Las Vegas is 0.4% off its all time high, while Phoenix is off by 0.7%. All other markets are at least 1% off their all time highs. This compares to the USA price feed which is off its all time high by only 0.6%.

The Case Shiller updated with June data on Tuesday 8/29, showing continued gains in prices across all major markets. Real time data from Parcl Labs picked this up as it was happening, and, in the nearly two months since, show a continued but slowing recovery. While many markets are up low/mid single digit percent from their end-June marks, a few, such as San Francisco, are off their highs and close to turning negative.

Importantly, July marks the tail end of the seasonal outperformance typically seen in many north/northeast markets.

What are Parcl traders doing?

Parcl traders exited August as long as they’ve been since late June; the aggregate split across all pools was 69% long / 31% short. As of September 15th, aggregate skew is almost perfectly balanced at 48% long / 52% short.

Certain pools are notably skewed, however. Standouts are Miami Beach (~99% long, ~$71k OI), Washington DC (~99% short, ~$81k OI), Denver (100% long, ~$62k OI),  and Miami Beach (~99% long, $10k OI).

Total open interest (OI) across all Parcl pools is approximately $275,000 in USDC terms, an all time high; the highest OI markets as of September 15th are Washington DC, Denver, and Miami Beach.

Given the variable positioning, contrarian opportunities may exist, especially in regional markets with diverting relative fundamental trends. Contrarian positions can be particularly attractive to traders with a counter or market-neutral view of Parcl markets with funding rate arbitrage opportunities.

Paris and Ile-De-France are the newest tradable markets on Parcl. Paris has risen 0.2% MTD (vs. +1.1% in August) while Ile-De-France has declined -0.7% (vs. -2.6%). Stay tuned for more global locations coming soon!

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