Purplebricks targets California as first US launch site

Hybrid online estate agent Purplebricks has announced plans to expand into California later this year as it looks to launch its first site in the US.

The AIM-listed company said it had chosen California due to the state's strong housing and economic fundamentals. According to data compiled by the California Association of REALTORS and other publicly available information pertaining to US homes sales, California ranks first in transactions nationally, with total sales commissions exceeding $11.5bn.

Purplebricks intends to expand into other key US states via a controlled roll-out strategy with a plan to accelerate coverage, as required. It has recruited Eric Eckardt, a real estate technology veteran, to serve as its US chief executive officer and position the company for long-term success in the market.

Founder and chief CEO Michael Bruce said: "We are absolutely delighted to be moving forward at pace with plans for what will be an exciting US launch. We will be giving sellers and buyers a unique and seamless experience. We are looking to recruit the very best real estate agents who want to be highly successful and who want to spend their time helping and supporting customers rather than prospecting for leads. We will provide them with a stimulating customer centric culture and market leading support to help them build scalable, profitable businesses."

At 0845 BST, the shares were up 0.5% to 417p.