The effect of Internet information on housing search process among different families in Beijing, China

Cross section data was used from a field survey of 676 homebuyers in the city of Beijing, China in 2009. The decision of homebuyers to use the Internet as a search tool and its impact on the efficiency of buyers´ search process was analyzed using a structural equation modeling (SEM). Three aspects of buyer character, Internet use and search behavior were selected as the latent variables in SEM. The path diagram and standardized regression weights were simulated, and the impacts of Internet information on the housing search efficiency among different families were compared. Results indicate that families living in the rent buildings are more apt to use the Internet in the housing search process than the families who have owned properties. The formers are slightly more effective in using the Internet to increase the search intensity, lower the search duration and reduce the time spent on viewing each house. Although the Internet information does have positive impact in the housing search process, the influence is not significant in China nowadays. It is important for the Chinese government to spread the general knowledge of the Internet search among the homebuyers, pay more attention to guide the online performance of the real estate firms and agencies, and take powerful actions to punish the illegal behavior of leaving false housing transaction information on websites.