Does size matter?
ComScore data for March 2011 marked growth for real estate search site Trulia.com who blogged about the data, stating that during this period, “consumers spent more time on Trulia than Zillow, marking Trulia’s steady ascent. Year-over-year, Trulia’s user engagement grew 79% on this key engagement metric, v. Zillow’s 22%.”
The big three size battle and how each real estate search company takes aim at their competitors doesn’t appear to be cooling down any time soon as press releases roll out pointing to why each is better. This week, Homes.com claimed that they have the highest time on site of all real estate search.
Why do minutes matter?
Trulia only targets Zillow with their commentary noting that “Minutes is a core metric — in addition to showing that we’re winning with consumers, our advertisers are very focused on engagement as measured by minutes spent.”
Trulia also points to page views as a leading metric, noting their surpassing Zillow with growth. Zillow, however, still had 3.5 million more unique visitors than Trulia making them a considerably larger network- perhaps their time on site was already high even a year ago that the room for improvement was much smaller?
March ComScore data charted:
What all of this means
Real estate search is a sector that is heavily invested in and companies like Trulia and Zillow have been open about being media companies with the goal of selling ads as primary revenue. Trulia is right- time on site is an indicator of interest and desirability in the site’s offering (rather than a split second a consumer spends on a site that is bad before moving on).
What do you think Trulia blogging about this information says? What does it say about Trulia that the bullseye is on Zillow? Is it lower hanging fruit than Realtor.com or is this a tortoise versus hare scenario? Does this data with low growth say that Zillow has been on top for a year and that Trulia is simply catching up?
This news leads us to ask more questions and ponder possibilities. Our 2010 consumer research on real estate search shows that each of the big three search companies appeals to a specific type of consumer, but perhaps this growth reveals a shift in the effectiveness (or lack thereof) of Trulia or Zillow to reach a broader demographic?
Tell us in comments what YOU think.
Austin tops the list of best places to buy a home
When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?
Looking at the bigger picture
(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).
That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).
They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.
“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”
Average age of houses on the rise, so is it now better or worse to buy new?
With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.
The average home age is higher than ever
(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.
With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.
Prices of new homes on the rise
Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.
Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?
The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.
Why Realtors are vulnerable to these rapid changes
(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.
Note: We’ll let you decide which company plays which role in the image above.
So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.
1. Zillow poaches top talent, Move/NAR sues
It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.
Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.
2. Two major media brands emerge
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