Impact of Social Media on Real Estate Sales

Abstract

More and more businesses are using social media to promote services and increase sales. This paper explores the impact of Facebook on real estate sales. First, we examine how Facebook activities are associated with real estate sales. Then, we include time lags in our analysis, because a time lag can be expected between the activates on Facebook and a resulting real estate transaction. The results suggest that: (1) The total numbers of Facebook Likes, links, and stories are positively associated with real estate sales; (2) The sentiment score of Facebook posts is negatively associated with real estate sales; (3) Time lag affects the impact of Facebook activities on real estate sales. The results reveal the predicting value of social media and the power of selected Facebook variables on real estate sales. The research findings can be used to promote sale and forecasting.