The slowdown in the real estate market couldn’t come at a worse time. Sales of existing homes fell 8.4% between February and March, and that’s the steepest month-to-month drop in 18 years. As a result, newspaper real-estate classified revenue slipped 2.26% in Q207. Just two quarters ago, the growth rate was 10.5%.
Economists aren’t predicting things will turn around soon, which means that one of newspapers’ few advertising strongholds – real estate classifieds – is under assault for the foreseeable future. Recruitment and services advertising is already moving online in a big way. Where will newspapers find the markets that justify their traditionally huge margins? Real estate ads apparently aren’t the answer.
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