Key facts
- Google is testing a new feature that embeds for-sale home listings directly into mobile search results.
- The feature is currently live in select markets such as Chicago, Denver, and Austin.
- The listings are powered by a partnership with ComeHome, a subsidiary of HouseCanary.
- The search results provide property details and options to request a tour or contact an agent.
- This move has led to a decline in the stock prices of Zillow and CoStar.
Google has begun testing a new advertising format that embeds for-sale home listings directly into mobile search results in select markets, including Chicago, Denver, and Austin. This move marks a potential new entrant into the ongoing "portal wars" within the real estate industry.
The feature, powered by a partnership between Google and ComeHome, a subsidiary of HouseCanary, displays full property details and provides links to request a tour or contact a buyer's agent. The search results explicitly state that the property information is not supplied or sponsored by listing agents or brokers.
Industry analysts have long considered Google's potential entry into the home search portal space a significant tail risk for established players like Zillow and CoStar. While Google has tested real estate products before, none have evolved into serious business ventures, leading to some skepticism about the longevity of this latest effort.
Nevertheless, the announcement has already impacted the stock prices of major listing portals, with both Zillow and CoStar experiencing declines. Analysts from Keefe, Bruyette and Woods (KBW) noted that Zillow's strong brand and direct traffic might offer some insulation. However, they suggested CoStar's Homes.com, which focuses on advertising for listing agents, could be more vulnerable compared to Google's buyer-agent-focused approach. Redfin, recently acquired by Rocket Companies, is also predicted to face some longer-term negative impact on its unique monthly visitors, though analysts believe Rocket still has opportunities to monetize its user base.
Google is not the only company outside the traditional housing industry to enter the portal wars this year. In July, USA Today publisher Gannett announced a partnership with AddressUSA to power an online real estate portal across its network.