There are a number of factors that affect domain pricing. But there is one overwhelming factor, demand.
Demand is the underlying factor that affects the pricing. Aged, clear, short, or descriptive domains are rare and in demand. The greater the demand, the higher the cost. However, there are other factors that impact price. What are they?
Quality of the domain name. The shorter the domain name the higher the value. Short pronounceable domains are very valuable. Also single popular word domains are rare and valuable. Next are domains with 2 popular keywords. Age of the domain also is a factor as such domains were registered years ago.
Target market. Many domains are generic enough that they can be used in almost any market. Others are clearly targeted towards specific markets. For example, a legal domain is more valuable than a home repair domain. But the quality of the domain must be considered.
Target geographic area. Domains that include a geo keyword (city, state, province, or country) will impact the price. Areas with higher populations and stronger economies will garner higher prices than smaller populations and weaker economies.
The extension also heavily influences the pricing. At Name Investments, we only deal with the dot com extension which is the most valuable extension.