Google enters portal wars with MLS listings in select cities

The portal wars may have a new entrant — and it isn’t one to shake a stick at. Google has begun testing a new advertising format in select markets that embeds for-sale home listings directly into search results. 

Listings are embedded only in mobile searches for listings in select markets, including Chicago, Denver and Austin. 

The listing displays in the search results are powered by a paid partnership between Google and ComeHome, which is a subsidiary of HouseCanary. As a licensed brokerage, HouseCanary subscribes to MLSs and has access to MLS feeds. 

The search result displays include all property details, along with links to request a tour or contact a buyer’s agent. The displays note that the property results are “not supplied or sponsored by listing agents or brokers.”

Industry analysts say the potential for Google to enter into the home search portal space has been viewed as a tail risk to portals like Zillow and CoStar, as well as other industry players, for years.

This is not the first time Google has tested a real estate-related product. But none of the technology behemoth’s prior attempts have evolved into anything serious, prompting skepticism that this may become a new business category for the company.

But the move by Google has caused the stock prices of listing portal stalwarts, including Zillow and CoStar, to decline. 

In an emailed note, analysts at Keefe, Bruyette and Woods (KBW) wrote that Zillow’s “significant direct traffic mix” and “strong brand” would keep it somewhat insulated from this move by Google.

But they also noted that the market is already ascribing significant negative value to CoStar’s Homes.com, as the portal is focused on providing advertising for listing agents, whereas Google’s product appears to be focused on buyer’s agents, like Zillow or Realtor.com.

As for Redfin, which was acquired by Rocket Companies earlier this year, the KBW analysts predict that there could be some “longer-term negative impact” on Redfin’s unique monthly visitors.

Despite this, the analysts think there is still a “very meaningful opportunity” for Rocket to monetize more of Redfin’s current number of unique monthly visitors, and that the opportunity would still be there even if the number of visitors declines due to Google’s new product. 

Google is not the only non-housing industry company to jump into the portal wars this year.

In July, USA Today publisher Gannett announced a multiyear partnership with AddressUSA to power an online real estate portal across the USA Today Network.