Twenty days ago there were 19,000 unregistered NNNNN.com domains. Less than two weeks later on February 16th the final domain was registered. Almost immediately the average prices reported were between $12-15. Almost none of the inventory of these domains held by investors have tested the prices on the resell market. It appears that there were very few investors that intended on flipping for a quick profit. Almost all of the sales after the initial sellout have been from drops.
This is very good news for investors. There are only 100,000 of these domains and approximately 41,000 of them are zip codes. Marchex owns both the .com and .net variations of about 99% these domains. Of the remaining 60,000 domains two thirds were already registered and many were already developed before the run on the market began three weeks ago. Of the remaining 20,000 I believe there are approximately 5 investors that own about 10,000 of the remaining domains. These investors already have a history of long term investment and development. This leaves a very small float for investors that waited until the buyout to claim a piece of this market.
In order to gauge the strength and trends of the NNNNN.com market I will report and analyze one day of Snapnames drops each week. While Snapnames does not necessarily represent the total market, with so few names for sale it is the most liquid market for NNNNN investors. I believe I captured all of today’s sales, but am not positive. I’ll continue monitorig and reporting sales on a weekly basis. Today there were a total of 46 NNNNN.com drops. The range was $21.00 to $39.00 with the average sales price at $26.30.
All prices are final prices. I placed initial bids on all of these names three days ago so that I could track their prices. I was not the winner of any of these auctions.
Just another hint of the value of NNNNN.com, is that people in china are already buying them at $10-$20 each. However, it is still underpriced. The value should be $50+ as the current market for NNNN.com is $500.
I have heard that US zip codes like your's have sold for around $2k. But I don;t know any details. What is the population of the area of your zip code and what kind of area is it (CBD, residential...)?
As of 2007, Houston (zip 77221)'s population is 26,819 people. Since 2000, it has had a population growth of 9.76 percent.
The median home cost in Houston (zip 77221) is $100,000. Home appreciation the last year has been 0.15 percent.
Compared to the rest of the country, Houston (zip 77221)'s cost of living is 26.07% Lower than the U.S. average.
Houston (zip 77221) public schools spend $5,009 per student. The average school expenditure in the U.S. is $6,058. There are about 18 students per teacher in Houston (zip 77221).
The unemployment rate in Houston (zip 77221) is 3.80 percent(U.S. avg. is 4.60%). Recent job growth is Positive. Houston (zip 77221) jobs have Increased by 2.26 percent.
I got that off a quick google search. Nothing huge or fancy but still part of houston, home values there are increasing as opposed to decreasing, unemployement is much lower than national average and there schools don't seem bad.........
I have a post up analyzing a random sample of 100 LLLL.com's to see whether they are developed sites or not, and analyzing the development potential for LLLL.com's as opposed to NNNNN.com's. It's pretty interesting to see the snapshots of the "landscape" for these domains.
I have a new post up analyzing another 100 random NNNNN.com's to see whether they are developed sites or not. In this sample, 52 were developed sites, 43 were zip code sites, 8 were Chinese sites, and 1 was a phone spell site. I will probably do a few more samples of the NNNNN's and LLLL's, but it seems like some basic conclusions are clear:
(1) there are a relatively small number of NNNNN's left to be developed, especially compared to the LLLL's, and
(2) the primary non-zip code developers of NNNNN's are in two of the hottest areas for future growth, the Chinese market and the mobile phone browsing market.
This weekend there not a lot of names dropping at Snapnames. Here is todays list. Auction ends at about 3:00 EST. 11987 appears to be the standout in this group. The number 1 was the first to run out, double number start and a three sequence end. I'll try to catch the final prices today, but if anyone else has a chance to document the final prices it would be appreciated. 11987 has 5,540,000 Google Results and 31289 has 7,160,000.
