The Google real estate CPL was higher (full report here) during the 4th quarter of 2021 than it was in the same period of 2020. This is the third straight quarter where the CPL increased year over year. However, the CPL remains below pre-pandemic levels.
Most cities posted higher lead prices, although some of the largest cities showed improvements - including Philadelphia, San Antonio, Cincinnati, and Nashville.
We expect that the portfolio CPL will continue to stabilize and remain better than it was pre-pandemic.
We have expanded this report to include our proprietary CINC Lead Value Index. This analysis uses market CPLs, current home prices (from NAR), and other factors such as expected close rate and commissions splits to determine what is the "value" of leads in each market. This approximates the return you should expect from your Google buyer advertising with CINC in those markets.
We recently held a webinar (you can watch full recording here) where we discussed in detail the origin and importance of the LVI. In brief, the higher the number the better the value. The markets with high LVI scores either have high home prices, low CPLs, or a combination of the two. The Lead Value Index overall has been steadily increasing and is nearly twice as high as it was pre-pandemic due to strong increases in home prices along with big improvements in lead prices.
The big markets with the highest LVI are Boston, San Francisco, and Los Angeles. The best performing market overall is Honolulu which has very high home prices and low lead prices.
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.