Could Google revolutionize the real estate market by introducing home listings directly in search results? This move by a key Google partner has raised eyebrows in the industry, with experts speculating on its potential impact on major portal players such as Zillow and Realtor.com.
A game-changing experiment: Google’s data partner HouseCanary, along with its IDX site ComeHome, is testing the waters by showcasing home listings at the top of search results in select markets. This feature includes essential details, pricing information, images, and a convenient “Request a tour” button. HouseCanary, a full-service brokerage licensed in all 50 states and Washington, D.C., is at the helm of this innovative initiative.
Real estate consultant Mike DelPrete was the first to uncover this pilot listing project, shedding light on the potential implications of this bold move.
HouseCanary recently shared details of this “controlled experiment” on LinkedIn, emphasizing their collaboration with Google to push boundaries and explore new possibilities in the real estate realm.
Prior search advancements: Google’s decision to incorporate home listing information follows its integration of AI summaries directly into search results over a year ago. This shift has led to a decline in user clicks on external pages, impacting various online platforms that rely on traffic for revenue generation.
Some major news sites have witnessed a significant drop in traffic due to AI summaries, signaling a shift in how users engage with search results.
Analysts’ perspectives: Industry analysts are divided on the potential ramifications of Google’s foray into home listings. While some believe it poses a long-term threat to portals like Zillow, others view it as an opportunity for Google to enhance its revenue streams.
Goldman Sachs analyst Michael Ng expressed concerns about the long-term impact on real estate portals, citing Google’s expanding presence in the market. However, Piper Sandler and other analysts downplayed the immediate effects on Zillow’s traffic and revenue.
Victor Lund of real estate consulting firm WAV Group raised concerns about the experimental nature of the project, suggesting it could challenge existing norms and standards within the industry.
Real Estate News has reached out to HouseCanary for further insights on the experiment’s scope and scale, as well as to Zillow for their perspective on Google’s new feature.
