RealtyTrac.com a useful Web 2.0 innovator

I'm in the process of selling my home (not for financial reasons -- we just want to get closer to town), which means I am theoretically in the market for buying another one at some point. If you follow the real estate market, you know that home foreclosures are at an all-time high, and that home sales have reached a 30-year low. There's just no movement at all. It's as though the space time continuum has stalled out in real estate and people have just decided to stuff money in mattresses again.

Interestingly, whenever there is a calamity like this, someone always invents a way to make money off of it. I am not saying that in bitterness or with a hint of sarcasm: I applaud any Web 2.0 site that figures out a new market, and offers a service that people want and need. I was surprised to see renewed interest in the site RealtyTrac.com (which has existed in one form or another since 1996). The site lists foreclosures in your area, but it's main perk is that it is easy to use. In about 2 minutes, I found 13 properties in foreclosure in my area, some listing at an extremely low "bank owned" price.

You can also view foreclosures by state, get advice on the home buying process, and find an agent. The site is not free, though -- there's a seven day trial but it normally costs about $20 per month.

So why is there such a sudden interest in RealtyTrac? One reason is that, with the upcoming election, sites that provide a service like this are getting more attention. Depending on who you are voting for, you probably think your candidate will turn things around -- so maybe now is the time to either sell your house or find a good deal on a house that is in foreclosure.

Another reason is that foreclosure activity has finally dropped (by 12%, according to RealtyTrak) -- but it's still 21% higher than last year at the same time. With that news, armed with a Web site that's easy to use and can show you details on properties in your area (unlike Zillow, which seems to focus more on major cities) and show them on an embedded map that worked flawlessly for me.

There's a lesson here for other Web 2.0 sites. Make it easy, and create a service that meets a felt need with a lot of people. Too many Web 2.0 sites are designed for a small niche and they end up failing.