Dronamraju Ravi Prakash

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Friday, December 17, 2004

Bambi Francisco - being an idiot again 


Not to pick on bambi, but she's being an idiot yet again, I have previously posted about bambi francisco's faulty logic.

Today she's providing commentary on ebay's buy out of rent.com. The article has a tag line(?)
Is ebay buying at the top of the housing bubble?

She goes on to say...
The revenue that Rent.com is bringing in has been driven by a record year in home sales. In the U.S., the turnover of existing homes is running at a record rate of 9 percent, according to Goldman Sachs.
....
If real-estate activity remains robust, that's good news for businesses like Rent.com, which help homeowners rent homes or assist people in moving and settling down in a new place. Rent.com even offers a listing of local wireless phone services and dating services.


So, i went on to rent.com site, to find out that they are predominantly apartment search site. Doing a search for housing in sunnyvale, i get a ton of apartments, and very few "houses".
I wish she actually did some research before she posted random stuff like this. Rental prices have not been very strong in several markets including south bay area, LA and phoenix (those that i kinda know). Big reason for the weakness in these markets is the ease of buying houses and strength in the housing market.

So ebay, might actually be buying rent.com in a weak rental market. Bursting housing bubble (if it does) might actually help rent.com

Bambi, either look at the website you post about, or stop posting your "analysis" about these deals and just post the news.

Comments:
Ravi -
Bambi may have a little different angle (maybe). If you notice that they mention home "turnover" rates, which in fact do drive rental revenue, as many in between home buyers rent for 3 to 6 months before getting into their new homes. . .


http://www.paul-saad.com
 
Curious. The lead adds something like "and at the beginning of the rent boom?" I couldn't find the quotes you mentioned.

Has the story been changed?
 
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