Traffic on the increase! Available VCVCV.com domains - July 2008
Jul 05

Has the domain niche that everyone thought was untouchable finally hit its peak? Over the past few weeks we have started to see a steady decline in the bottom end prices of LLL.com domains. 3Character.com still reports that the LLL.com market is increasing stating that the current observed minimum wholesale value is up $50 this month to $7650.

This is pretty far from the truth considering the recent sales data taken from multiple venues. Here are some recent LLL.com sales:

2008-06-20 - RYY.com - $7,124
2008-06-23 - XKD.com - $7,100
2008-06-26 - HMQ.com - $7,300
2008-06-26 - BIY.com - $7,400
2008-07-01 - QVK.com - $6,730
2008-07-02 - FQV.com - $6,305

All of these recent sales are below the current ‘observed minimum wholesale’ value posted on 3Character.com on the 1st July 2008. It seems the site isn’t all that accurate after all. You could argue that some of these aren’t of the highest quality but this is incidental considering the minimum wholesale figure doesn’t discriminate and covers all LLL.com domains.

Will this recent decrease in LLL.com domain value incite panic selling. There seems to have been an increase in LLL.com domains on the market recently and this will only decrease their value further. Greater supply is soon followed by decreased demand. Some domain investors think that this is the beginning of a LLL.com price crash and believe prices could fall below $4000 in the coming months. Has the mighty giant, the ’safest’ investment, the domain niche offering ultimate liquidity, finally hit it’s peak?

How this will affect four letter domain sales I do not know but just recently we have seen a marginal increase in LLLL.com sales figures. I believe this is because the peoples gaze has turned to the three letter domain market. Confidence is once again beginning to grow in quad letter domains because the initial scare of falling prices has passed and people have once again begun to reinvestin this niche. Who knows if this will continue as three letter domain sales inevitably affect their four letter domain offspring. They are intertwinedbut many domainers believe the huge gap between the two markets must close sooner or later. What they didn’t believe is that its LLL.com prices decreasing that is closing the gap rather than LLLL.com prices dramatically increasing. What do you think?

written by Richard \\ tags: , , , , , ,

3 Responses to “Three letter domain value decreasing?”

  1. steven richards Says:

    Hi Richard
    What LLL.coms have going for them, even in this cooling market is a copper bottom of supply. With over 50% developed and at least 20% in the hands of investors who are known for never selling, it leaves a balance of around 5,000 for speculators. And this pool of names is reduced year on year as more are developed and others get brought by holdem investors. Compare this with LLLL.coms with estimates of only 20% developed leaving approx 320,000 for speculators. Its the squeeze on supply of LLL.coms which will increase prices, even if in the short term there is a spike of supply but inevitably it will dry up again forcing prices up.

  2. Richard Says:

    Hi Steven,

    This is very true, and partly the reason I get excited with end user sales of LLLL.com’s… it results in less names being ‘available’ on the open market. A long way to go before they catch their shorter counterparts though as you have so rightly said.

    This may well be just a momentary dip in the market which will soon correct itself in the next few days. I think the reason many people are getting ‘excited’ about this news is that its something that hasn’t been heard of for the last 4-5 years and for different domain investors could be a milestone that could affect them in either a positive or negative way.

    Thanks for your comment :)

  3. Domaining Says:

    Economic conditions are becoming more difficult to predict and many people are suggesting an economic recession is quite possible. Could this be people’s responses to more uncertain economic conditions? I would think that it is economic pressures, rather than anything else, that is the principal driver of LLL domain prices falling, and I would suggest that falls are likely to continue until economic conditions improve. The problem is that it may take 2 - 3 years or more before prices get back to present levels.

    However, in my opinion LLL .com s are sound long term investments and if there are significant price falls that sounds like a good buying opportunity to me!

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