The Kelsey Group issued a press release today, based on data drawn from “omnibus” consumer research, which reportedly found the following:
Sellers turn first to newspapers (24%), followed by signs (19%) to advertise real estate for sale, while buyers turn equally to newspapers (30%) and online (30%). And the younger generation, which is the most active real estate-buying age group (18- to 34-year-olds), turns to online sources first.
These data are broadly consistent with overall demographic and online trends. In particular, younger buyers use the Internet much more often than older buyers in their according to the National Association of Realtors (NAR). NAR research in 2005 showed that 77% of home buyers now use the Internet as part of their housing search. The NAR also found that “the median age of buyers who used the Internet to search for homes was 11 years younger than those who did not, at 38 and 49, respectively.”
According to Borrell and Associates, Real Estate is the top category in local online spending, with a nearly 22% share. Automotive is second. Borrell reports that 39% of local realtors advertise online.
Classified Intelligence reported earlier that, among local realtors, there’s reluctance to advertise in local newspapers: 36% spent 10% or less of their total budgets in their local newspapers, 19% spent less than 20% of their total budgets on newspaper print ads. And 17% didn’t advertise at all in print newspapers.
According to the most recent NAA figures, Q2 print classified real estate advertising was just over $1.2 billion. Online, real estate spending is distributed across paid search, display and verticals.
Here are the NAA’s 2005 classifieds spending data:
Source: NAA
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Related: Zillow is making its data broadly available to third party sites through two APIs. Simultaneously a complaint has been filed against the company with the FTC surrounding its core value proposition — it’s “Zestimate” valuation tool. The Seattle PI has more. Here’s Zillow’s response to the issue.
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