The One Strong Real Estate Market in America – Online…
It looks like there is one good real estate market left in America, and that is online. The views of real estate sites and traffic coming into them is growing as America tries to come to grips with the slowdown in the real world.
This does make sense as real estate is the one asset that most Americans hold and all Americans use. The need to understand even vaguely the market will drive readers online forever more thus making the online real estate market a solid bet.
That is unless this market also gets overbuilt.
Executives of Trulia, Zillow and Terabitz said they, too, were encouraged by recent results. Online real estate companies, they added, could be today’s version of the online travel agencies that flourished after the Sept. 11 attacks: A cheap alternative for suppliers looking to market a product that is suddenly in low demand.
In this case, brokers and agents have seen their marketing budgets shrink in lockstep with their commissions as they struggle to sell homes.
“There’s no doubt that a lot of brokers are feeling some pain right now,” said Pete Flint, chief executive of Trulia, a real estate search service in San Francisco. “They’re spending less on advertising than they were, but they’re spending a significantly larger portion online, because it’s cheaper, and it’s where the audience is.” via SFGate.
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Comment by Red on 26 February 2008:
No kidding, those sites are booming. I’d like to sell my home and buy a place that fits my current needs better, but the grossly inflated value of my home and the place I would replace it with means that the transaction costs – all a percentage of the value – prohibit it. It would cost nearly a year of my take home salary to sell my home and buy another. If I use one of the online sites I can cut that by two thirds, so that’s what I am considering.