Continuing the trend from the second quarter, the real estate seller cost per lead on Google (full report here) continued to rise year-over-year because of increased demand for seller leads and low home inventory.
This trend of increased cost per lead - due in large part to the pandemic which cause lead costs to fall sharply last year - mirrors the buyer leads market. However, unlike the buyer leads market where there is not a large difference between markets, the gap between high CPL and low CPL seller leads markets is wider.
Large markets with the lowest lead prices are Philadelphia, St. Louis, and Boston which are all below $10 a lead. The most expensive big markets are San Diego, Phoenix, and Tampa.
Because of the current competitive home selling market – and the continued high interest in seller leads – we expect the cost per lead to remain at the current levels and increase during the fourth quarter. Lead prices typically edge up in the fourth quarter because of seasonality.
CINC is the leader in online real estate lead generation with more than 3,000 clients. The CINC client marketing team manages almost $30 million in search and social advertising spend annually.