Residential real estate prices fell again in August, but traders are bullish
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!