EXHIBIT 99.1

                       [LOGO OF HOMESTORE APPEARS HERE]


          HOMESTORE PROVIDES ADDITIONAL ACCOUNTING INQUIRY INFORMATION

WESTLAKE VILLAGE, CA--January 2, 2002--Homestore.com, Inc. (NASDAQ:  HOMS) today
released additional information about the inquiry by the Audit Committee of its
Board of Directors into certain of the company's accounting practices, that the
company announced in its press release on December 21, 2001. The Audit
Committee, with the assistance of independent legal counsel and independent
accountants, has continued to conduct a thorough inquiry into the company's
accounting practices. The inquiry is not yet complete and, while it is not yet
possible to predict the ultimate results of the inquiry, the company has made a
preliminary determination that it will restate certain of its financial
statements.

Based on the preliminary results of the inquiry to date, the company has
determined that it overstated its on-line advertising revenues in the first
three quarters of 2001 by between $54 million and $95 million in connection with
certain advertising transactions that should have been accounted for as barter
transactions because they were related to purchases by the company of goods and
services from third parties. When the company completes its analysis of the
overstatements, the company intends to amend its previously filed reports on
Form 10-Q for the quarters ended March 31, June 30 and September 30, 2001 to
reflect these and any other required adjustments to its financial statements for
those periods. Accordingly, investors should not rely upon the company's
previously filed reports on Form 10-Q for those quarters or the financial
statements contained therein.

Because the inquiry by the Audit Committee is not complete and the Audit
Committee is examining a large number of transactions, there may be additional
material restatements of the company's financial results once the inquiry is
complete. The transactions under review include transactions that occurred in
the year 2001, as well as transactions that occurred in the year 2000. The
company cannot at this time quantify the amounts of potential additional
restatements. Any additional restatements, if required, could have a further
material adverse impact on the company's reported financial results. Such
restatements could also include a restatement of financial results for the year
ended December 31, 2000. The Audit Committee and the company are firmly
committed to completing a thorough, expeditious inquiry of these matters in an
independent, objective manner, and currently expect to complete the inquiry by
the end of the first quarter of 2002.

The company continues to be focused on and committed to serving its customers
and continues to operate REALTOR.com(R), Homestore.com(TM), HomeBuilder.com(TM),
Homestore(TM) Apartments & Rentals and its other websites and services.

ABOUT HOMESTORE

Homestore.com, Inc. (NASDAQ: HOMS) is the leading supplier of online media and
technology solutions to the home and real estate industry. Through its family of
Web sites, the company offers consumers Everything Home(TM) including the
largest online source of homes for sale. The company's leading Web sites include
flagship site REALTOR.com(R), the official Web site of the National


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Association of REALTORS(R); HomeBuilder.com(TM), a new homes destination;
Homestore(TM) Apartments & Rentals; and Homestore.com(TM), a home information
resource. Content is available through the AOL House & Home Channel. Homestore
also develops and sells technology to help home and real estate professionals
connect with their online audience and work more efficiently.

CAUTION REGARDING FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to material risks and uncertainties and investors should
not place undue reliance on these forward-looking statements, which speak only
as of the date of this press release. The statements relating to anticipated
restatements of financial results are based on the company's current
expectations and are subject to uncertainty and the completion of the inquiry
currently being conducted by the Audit Committee. Actual results may differ
materially from these expectations. The company cannot at this time quantify the
exact amounts of such restatements, and the company may determine to restate
additional amounts that could have a further material adverse impact on the
company's reported financial results. There can be no assurances that any final
restatement will not include revisions to the announced adjustments, require
additional adjustments, or cover additional periods earlier than the first
quarter of 2001.

Reported historical results should not be considered as an indicator of future
performance. Risks and uncertainties that may affect our future results include,
but are not limited to, the following: changes in global economic, business,
competitive market and regulatory factors, our ability to raise additional
amounts of cash to fund our planned operations, our ability to maintain and
manage favorable agreements and relationships with the National Association of
REALTORS (R), the National Association of Home Builders, other individuals and
entities in the real estate professional community, and Internet portals; our
ability to continue to obtain a large percentage of available real estate
property listings; acceptance by consumers and real estate professionals of our
business model; our ability to manage rapid growth, both internally and through
acquisitions; the success of strategic alliances and joint ventures that we
enter into; cyclical, seasonal and other changes in the real estate markets;
seasonality and other fluctuations in the company's financial results; our
ability to maintain high reliability for our server-based Web services; our
ability to protect our intellectual property; uncertainty as to the timing and
amount of future Internet-related revenue and profits, including revenues from
advertising; the occurrence of unforeseen expenses in the future; and our
ability to retain and motivate our employees, and recruit additional members to
our management team. The matters discussed in this press release also involve
risks and uncertainties described from time to time in our filings with the SEC.
In particular, see "Risk Factors" in our Annual Report on Form 10-K for the year
ended December 31, 2000 filed with the SEC.

                                     # # #

Financial contact:
DeLise Keim
(805) 557-2599
delise.keim@homestore.com

Media contact:
Gary Gerdemann
(805) 557-3597
gary.gerdemann@homestore.com