The recession is affecting just about every world market there is, including that of the high value domain segment. Domain names continue to decrease in value according to my personal portfolio evaluations I have been doing. Primary price decreases are led by the simple fact that liquidible cash is not available like it was just 6-12 months ago. Another cause of devaluation can be the lower parking revenue due to the lack of advertisers feeding the parking company with quality high prices advertisement.
The average 3 letter .com domain is selling at $6900 (in the past 4 weeks). This is compared to $9800 just 6 months ago. This represent a devaluation of almost 30%. Considering the stock market has fallen nearly 40% in the same time period, and home prices have fallen about 40% as well in the last 3 years, this is not all that bad.
We predict this downward trend to continue for the 1st quarter, and then a gradual increase from April onwards as the economy in general will begin showing signs of a recovery.
For more articles about my domain name thoughts, check out my articles at: Brian's Dmain Articles
Monday, February 23, 2009
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