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

[briansd1]

I think that there are more issues to take into account.

– We have increasing urbanization.

– The large urban centers tend to attract new immigrants who don’t own houses yet.

– Financing was easier around the world. That, I believe, was the main driver of prices. In Russia, or China, or even Cambodia, prices have increased many folds simply because of liquidity. They don’t have an organized MLS like we do here.

– Prices in America are generally relative cheap compared to world real estate prices, and relative to our incomes, thanks to our more efficient markets and the ability of builders build to fill demand (but our property taxes are very high so the carrying costs are much greater).

[briansd1]

Let me throw out a few other observations:

– Internet related real estate innovations came out fairly late. SDlookup, ZipRealty, etc.. didn’t come until about 2006, after the boom. Before you had to register with some realty company.

– Real estate purchases is generational thing. Especially on the upper end, the buyers are in their 40s to 60s.

– Kids who grew up with the Internet and take it for granted have not entered the real estate market yet.

– Older people like to deal using the traditional channels. Young folks find it perfectly fine to send terse text messages. When kids grow up there will be change. Remember, the browser wasn’t made popular until 1996 with Netscape and Windows 95. It wasn’t until Year 2000 when broadband became common.

– Real estate is not something that people buy everyday and multiple times. They tend to expect the same experience as the last purchase.

– Real estate is an emotional thing dominated by women. You can now buy books, electronics and clothing cheaper online. But I’m sure that the prices of wedding dresses have increased or at least remained stable. Is there a gender component to real estate pricing?

[briansd1]

Let me throw out a few other observations:

– Internet related real estate innovations came out fairly late. SDlookup, ZipRealty, etc.. didn’t come until about 2006, after the boom. Before you had to register with some realty company.

– Real estate purchases is generational thing. Especially on the upper end, the buyers are in their 40s to 60s.

– Kids who grew up with the Internet and take it for granted have not entered the real estate market yet.

– Older people like to deal using the traditional channels. Young folks find it perfectly fine to send terse text messages. When kids grow up there will be change. Remember, the browser wasn’t made popular until 1996 with Netscape and Windows 95. It wasn’t until Year 2000 when broadband became common.

– Real estate is not something that people buy everyday and multiple times. They tend to expect the same experience as the last purchase.

– Real estate is an emotional thing dominated by women. You can now buy books, electronics and clothing cheaper online. But I’m sure that the prices of wedding dresses have increased or at least remained stable. Is there a gender component to real estate pricing?

[briansd1]

Let me throw out a few other observations:

– Internet related real estate innovations came out fairly late. SDlookup, ZipRealty, etc.. didn’t come until about 2006, after the boom. Before you had to register with some realty company.

– Real estate purchases is generational thing. Especially on the upper end, the buyers are in their 40s to 60s.

– Kids who grew up with the Internet and take it for granted have not entered the real estate market yet.

– Older people like to deal using the traditional channels. Young folks find it perfectly fine to send terse text messages. When kids grow up there will be change. Remember, the browser wasn’t made popular until 1996 with Netscape and Windows 95. It wasn’t until Year 2000 when broadband became common.

– Real estate is not something that people buy everyday and multiple times. They tend to expect the same experience as the last purchase.

– Real estate is an emotional thing dominated by women. You can now buy books, electronics and clothing cheaper online. But I’m sure that the prices of wedding dresses have increased or at least remained stable. Is there a gender component to real estate pricing?

[briansd1]

Let me throw out a few other observations:

– Internet related real estate innovations came out fairly late. SDlookup, ZipRealty, etc.. didn’t come until about 2006, after the boom. Before you had to register with some realty company.

– Real estate purchases is generational thing. Especially on the upper end, the buyers are in their 40s to 60s.

– Kids who grew up with the Internet and take it for granted have not entered the real estate market yet.

– Older people like to deal using the traditional channels. Young folks find it perfectly fine to send terse text messages. When kids grow up there will be change. Remember, the browser wasn’t made popular until 1996 with Netscape and Windows 95. It wasn’t until Year 2000 when broadband became common.

– Real estate is not something that people buy everyday and multiple times. They tend to expect the same experience as the last purchase.

– Real estate is an emotional thing dominated by women. You can now buy books, electronics and clothing cheaper online. But I’m sure that the prices of wedding dresses have increased or at least remained stable. Is there a gender component to real estate pricing?

[briansd1]

Let me throw out a few other observations:

– Internet related real estate innovations came out fairly late. SDlookup, ZipRealty, etc.. didn’t come until about 2006, after the boom. Before you had to register with some realty company.

– Real estate purchases is generational thing. Especially on the upper end, the buyers are in their 40s to 60s.

– Kids who grew up with the Internet and take it for granted have not entered the real estate market yet.

– Older people like to deal using the traditional channels. Young folks find it perfectly fine to send terse text messages. When kids grow up there will be change. Remember, the browser wasn’t made popular until 1996 with Netscape and Windows 95. It wasn’t until Year 2000 when broadband became common.

– Real estate is not something that people buy everyday and multiple times. They tend to expect the same experience as the last purchase.

– Real estate is an emotional thing dominated by women. You can now buy books, electronics and clothing cheaper online. But I’m sure that the prices of wedding dresses have increased or at least remained stable. Is there a gender component to real estate pricing?

[sdrealtor]

Thanks for the input but I’d really like to keep the focus on my eureka moment of sorts. It just seems to me that in the last few years demand has become more concentrated than it was. The pace at which information is disseminated has picked up and will only accelerate. While there are other forces out there, it seems like the Internet its instant availability of information on what is for sale has been inflationary not deflationary as I would have expected.

[sdrealtor]

Thanks for the input but I’d really like to keep the focus on my eureka moment of sorts. It just seems to me that in the last few years demand has become more concentrated than it was. The pace at which information is disseminated has picked up and will only accelerate. While there are other forces out there, it seems like the Internet its instant availability of information on what is for sale has been inflationary not deflationary as I would have expected.

[sdrealtor]

Thanks for the input but I’d really like to keep the focus on my eureka moment of sorts. It just seems to me that in the last few years demand has become more concentrated than it was. The pace at which information is disseminated has picked up and will only accelerate. While there are other forces out there, it seems like the Internet its instant availability of information on what is for sale has been inflationary not deflationary as I would have expected.

[sdrealtor]

Thanks for the input but I’d really like to keep the focus on my eureka moment of sorts. It just seems to me that in the last few years demand has become more concentrated than it was. The pace at which information is disseminated has picked up and will only accelerate. While there are other forces out there, it seems like the Internet its instant availability of information on what is for sale has been inflationary not deflationary as I would have expected.

[sdrealtor]

Thanks for the input but I’d really like to keep the focus on my eureka moment of sorts. It just seems to me that in the last few years demand has become more concentrated than it was. The pace at which information is disseminated has picked up and will only accelerate. While there are other forces out there, it seems like the Internet its instant availability of information on what is for sale has been inflationary not deflationary as I would have expected.

[sdduuuude]

I don’t think the purchase process enhances or reduces the value of the underlying property being purchased, thus in the long run, I don’t think it has any effect on prices.

It isn’t like people were sitting around wondering how to buy a house and now all of the sudden they can.

Maybe the market has better info and thus prices react a little (maybe not even measurably) faster to changes, but there is no pricing paradigm shift.

[sdduuuude]

I don’t think the purchase process enhances or reduces the value of the underlying property being purchased, thus in the long run, I don’t think it has any effect on prices.

It isn’t like people were sitting around wondering how to buy a house and now all of the sudden they can.

Maybe the market has better info and thus prices react a little (maybe not even measurably) faster to changes, but there is no pricing paradigm shift.

[sdduuuude]

I don’t think the purchase process enhances or reduces the value of the underlying property being purchased, thus in the long run, I don’t think it has any effect on prices.

It isn’t like people were sitting around wondering how to buy a house and now all of the sudden they can.

Maybe the market has better info and thus prices react a little (maybe not even measurably) faster to changes, but there is no pricing paradigm shift.

[sdduuuude]

I don’t think the purchase process enhances or reduces the value of the underlying property being purchased, thus in the long run, I don’t think it has any effect on prices.

It isn’t like people were sitting around wondering how to buy a house and now all of the sudden they can.

Maybe the market has better info and thus prices react a little (maybe not even measurably) faster to changes, but there is no pricing paradigm shift.

[Author]

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