The Internet may not have had the impact we all thought it would on housing

[sdrealtor]

This weekend I was driving around Encinitas and passed by some houses that I looked at as a homebuyer in 1997. I got me thinking about something that has been discussed online around here. Something I now think that we may have wrong here.

There is a fairly widely held hypothesis that because we can find so much more information online about real estate that the market is more efficient and hence prices should be relatively lower now. The idea that we are more informed consumers so we wont make mistakes. But there is one major flaw in that thinking which hit me this weekend. Back in 1997, it was hard to find what was on the market. The 1st property I bought (pror to my RE career) had fallen out of escrow and because I was working with a friend of the listing agent she knew about it and we were able to slip right into the transaction. Today that property would go right back online and instantly be visible to the world. A decade ago that was not the case.

So while it is easier for any individual buyer to find their own properties, it is easier for everyone also. I dont know how to quantify this but I think that the instant massive market exposure the Internet has created has increased prices and fundamentally changed prices by shifting the demand curve. I am constantly dumfounded by prices remaining as strong as they have. Could it be that things have changed so much that the old paradigms dont apply in the same way. In the past, a seller was at a disadvantage because they had no way of knowing how many people were interested in their home. Today a property gets listed, is immediately uploaded to the internet, emailed to our iPhones/Blackberry’s and within a few hours the seller is getting calls to view their property.

AM I nuts to think that the Internet may have permanantly increased fundamental prices levels. It has given sellers an advantage that did not exist a decade ago. I guess what I am asking is – “Is it different now?”

[Nor-LA-SD-guy]

I think it all comes down to current available inventory (not talking shadows please),

The more inventory in a specific Location the more the internet drives down prices, the less inventory, the more it drives up prices (for a given Location)

That and “Location Location Location ”

Believe it or not it’s still more important that ever it seems.

Although I believe it will matter less and less as the internet takes more and more functions in society (can’t put the genie back in the bottle now !!)

I think school location will matter less and less as that too is influenced more and more by the internet, that and we can’t afford to build new class rooms and staff them with qualified teachers for the coming Kid boom.

I think this will become the great location equalizer eventually (yea OK there is more to it than that) but at least someday it won’t matter near as much what school district you live in.

[Nor-LA-SD-guy]

I think it all comes down to current available inventory (not talking shadows please),

The more inventory in a specific Location the more the internet drives down prices, the less inventory, the more it drives up prices (for a given Location)

That and “Location Location Location ”

Believe it or not it’s still more important that ever it seems.

Although I believe it will matter less and less as the internet takes more and more functions in society (can’t put the genie back in the bottle now !!)

I think school location will matter less and less as that too is influenced more and more by the internet, that and we can’t afford to build new class rooms and staff them with qualified teachers for the coming Kid boom.

I think this will become the great location equalizer eventually (yea OK there is more to it than that) but at least someday it won’t matter near as much what school district you live in.

[Nor-LA-SD-guy]

I think it all comes down to current available inventory (not talking shadows please),

The more inventory in a specific Location the more the internet drives down prices, the less inventory, the more it drives up prices (for a given Location)

That and “Location Location Location ”

Believe it or not it’s still more important that ever it seems.

Although I believe it will matter less and less as the internet takes more and more functions in society (can’t put the genie back in the bottle now !!)

I think school location will matter less and less as that too is influenced more and more by the internet, that and we can’t afford to build new class rooms and staff them with qualified teachers for the coming Kid boom.

I think this will become the great location equalizer eventually (yea OK there is more to it than that) but at least someday it won’t matter near as much what school district you live in.

[Nor-LA-SD-guy]

I think it all comes down to current available inventory (not talking shadows please),

The more inventory in a specific Location the more the internet drives down prices, the less inventory, the more it drives up prices (for a given Location)

That and “Location Location Location ”

Believe it or not it’s still more important that ever it seems.

Although I believe it will matter less and less as the internet takes more and more functions in society (can’t put the genie back in the bottle now !!)

I think school location will matter less and less as that too is influenced more and more by the internet, that and we can’t afford to build new class rooms and staff them with qualified teachers for the coming Kid boom.

I think this will become the great location equalizer eventually (yea OK there is more to it than that) but at least someday it won’t matter near as much what school district you live in.

[Nor-LA-SD-guy]

I think it all comes down to current available inventory (not talking shadows please),

The more inventory in a specific Location the more the internet drives down prices, the less inventory, the more it drives up prices (for a given Location)

That and “Location Location Location ”

Believe it or not it’s still more important that ever it seems.

Although I believe it will matter less and less as the internet takes more and more functions in society (can’t put the genie back in the bottle now !!)

I think school location will matter less and less as that too is influenced more and more by the internet, that and we can’t afford to build new class rooms and staff them with qualified teachers for the coming Kid boom.

I think this will become the great location equalizer eventually (yea OK there is more to it than that) but at least someday it won’t matter near as much what school district you live in.

[briansd1]

The market is not much more efficient now. That’s because the MLS is still controlled by Realtors.

It will take time… but as TG said, you can put the Genie back in the bottle.

Computers, databases and electronic forms have made title companies and escrow companies much more productive. I bet you that one employee can do much than 10 years ago.

Same can be said for health care, auto dealerships, and other industries.

Remember friction less commerce? Just in time inventory? Made to order? Webvan?

I don’t believe in paradigm shifts. Things change little by little over time. We don’t realize that things are changing but they are.

A new class of better educated consumers is emerging. People like jpinpb, UCGal and me who are able to view and research data before making purchasing decisions.

That kind of research was not possible 10 years ago without relying on the gatekeeper realty industry insiders.

[briansd1]

The market is not much more efficient now. That’s because the MLS is still controlled by Realtors.

It will take time… but as TG said, you can put the Genie back in the bottle.

Computers, databases and electronic forms have made title companies and escrow companies much more productive. I bet you that one employee can do much than 10 years ago.

Same can be said for health care, auto dealerships, and other industries.

Remember friction less commerce? Just in time inventory? Made to order? Webvan?

I don’t believe in paradigm shifts. Things change little by little over time. We don’t realize that things are changing but they are.

A new class of better educated consumers is emerging. People like jpinpb, UCGal and me who are able to view and research data before making purchasing decisions.

That kind of research was not possible 10 years ago without relying on the gatekeeper realty industry insiders.

[briansd1]

The market is not much more efficient now. That’s because the MLS is still controlled by Realtors.

It will take time… but as TG said, you can put the Genie back in the bottle.

Computers, databases and electronic forms have made title companies and escrow companies much more productive. I bet you that one employee can do much than 10 years ago.

Same can be said for health care, auto dealerships, and other industries.

Remember friction less commerce? Just in time inventory? Made to order? Webvan?

I don’t believe in paradigm shifts. Things change little by little over time. We don’t realize that things are changing but they are.

A new class of better educated consumers is emerging. People like jpinpb, UCGal and me who are able to view and research data before making purchasing decisions.

That kind of research was not possible 10 years ago without relying on the gatekeeper realty industry insiders.

[briansd1]

The market is not much more efficient now. That’s because the MLS is still controlled by Realtors.

It will take time… but as TG said, you can put the Genie back in the bottle.

Computers, databases and electronic forms have made title companies and escrow companies much more productive. I bet you that one employee can do much than 10 years ago.

Same can be said for health care, auto dealerships, and other industries.

Remember friction less commerce? Just in time inventory? Made to order? Webvan?

I don’t believe in paradigm shifts. Things change little by little over time. We don’t realize that things are changing but they are.

A new class of better educated consumers is emerging. People like jpinpb, UCGal and me who are able to view and research data before making purchasing decisions.

That kind of research was not possible 10 years ago without relying on the gatekeeper realty industry insiders.

[briansd1]

The market is not much more efficient now. That’s because the MLS is still controlled by Realtors.

It will take time… but as TG said, you can put the Genie back in the bottle.

Computers, databases and electronic forms have made title companies and escrow companies much more productive. I bet you that one employee can do much than 10 years ago.

Same can be said for health care, auto dealerships, and other industries.

Remember friction less commerce? Just in time inventory? Made to order? Webvan?

I don’t believe in paradigm shifts. Things change little by little over time. We don’t realize that things are changing but they are.

A new class of better educated consumers is emerging. People like jpinpb, UCGal and me who are able to view and research data before making purchasing decisions.

That kind of research was not possible 10 years ago without relying on the gatekeeper realty industry insiders.

[sdrealtor]

I disagree that the market is not more efficient now. It is far more efficient. Before the Internet, there were MLS listing books that came out once a week/month. They were outdated before they were published. The genie is out of the bottle for sure but is it having the impact we all hypothesized it would? I am questioning that now. I am not questioning that we can do more research, better educater ourselves or that we arent more productive. What I’m questioning is whether the Internet has shifted the demand curve by making the information more widely available to everyone. By everyone I mean not just the “new class of better educated consumers” like you but by all the nit wits also.

As a buyer you bought what you could find which wasnt much. Now a buyer in Kasakhastan can instantly see a new listing in San Diego. I do agree we are better educated now but not that necessarily will decease prices. Consider the possibility that things may have been undervalued because the market was not adequately aware of the supply. I’m not sayin this is so but rather inviting people to open their minds to this possibility for a discussion to see where it takes us.

[sdrealtor]

I disagree that the market is not more efficient now. It is far more efficient. Before the Internet, there were MLS listing books that came out once a week/month. They were outdated before they were published. The genie is out of the bottle for sure but is it having the impact we all hypothesized it would? I am questioning that now. I am not questioning that we can do more research, better educater ourselves or that we arent more productive. What I’m questioning is whether the Internet has shifted the demand curve by making the information more widely available to everyone. By everyone I mean not just the “new class of better educated consumers” like you but by all the nit wits also.

As a buyer you bought what you could find which wasnt much. Now a buyer in Kasakhastan can instantly see a new listing in San Diego. I do agree we are better educated now but not that necessarily will decease prices. Consider the possibility that things may have been undervalued because the market was not adequately aware of the supply. I’m not sayin this is so but rather inviting people to open their minds to this possibility for a discussion to see where it takes us.

[sdrealtor]

I disagree that the market is not more efficient now. It is far more efficient. Before the Internet, there were MLS listing books that came out once a week/month. They were outdated before they were published. The genie is out of the bottle for sure but is it having the impact we all hypothesized it would? I am questioning that now. I am not questioning that we can do more research, better educater ourselves or that we arent more productive. What I’m questioning is whether the Internet has shifted the demand curve by making the information more widely available to everyone. By everyone I mean not just the “new class of better educated consumers” like you but by all the nit wits also.

As a buyer you bought what you could find which wasnt much. Now a buyer in Kasakhastan can instantly see a new listing in San Diego. I do agree we are better educated now but not that necessarily will decease prices. Consider the possibility that things may have been undervalued because the market was not adequately aware of the supply. I’m not sayin this is so but rather inviting people to open their minds to this possibility for a discussion to see where it takes us.

[sdrealtor]

I disagree that the market is not more efficient now. It is far more efficient. Before the Internet, there were MLS listing books that came out once a week/month. They were outdated before they were published. The genie is out of the bottle for sure but is it having the impact we all hypothesized it would? I am questioning that now. I am not questioning that we can do more research, better educater ourselves or that we arent more productive. What I’m questioning is whether the Internet has shifted the demand curve by making the information more widely available to everyone. By everyone I mean not just the “new class of better educated consumers” like you but by all the nit wits also.

As a buyer you bought what you could find which wasnt much. Now a buyer in Kasakhastan can instantly see a new listing in San Diego. I do agree we are better educated now but not that necessarily will decease prices. Consider the possibility that things may have been undervalued because the market was not adequately aware of the supply. I’m not sayin this is so but rather inviting people to open their minds to this possibility for a discussion to see where it takes us.

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