Prices paid for domains increased by 1.5 % in September, as the newest IDNX estimates show. Liquidity picked up as well, as more domains changed owners in September than in the months beforehand. Both are signs of a healthy secondary domain market.
Looking at the trend, it is striking that “peak” of high prices during summer 2012 has extended to a “plateau” of high domain prices which exceeds even the highest values from 2007 and 2010. This seems to indicate that high price levels are not just a summer fling but something more substantial.
The long-term balance between returns in the IT industry and investments in domains continues, despite short-run deviations from trends in the NASDAQ 100 stock price index (which actually decreased in September). When comparing IDNX to IT stocks, domain prices are not excessively high, which is another indicator that the current price levels are sustainable.
However, domains could not keep pace with Google’s stock performance. Last quarter, Google was just an incredibly good investment.