What's driving secret Boston-area home sales
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Illustration: Brendan Lynch/Axios
Boston's hellish housing market could soon get even trickier to navigate.
Why it matters: Some real estate companies want to list homes on private networks, fueling fears that buyers might struggle to access them.
How it works: Right now, most homes for sale are widely viewable online and on multiple listing services (MLS), the databases brokers use.
- Some brokerages are pushing for more leeway to privately share listings with their agents and clients before advertising them publicly on the MLS.
- The National Association of Realtors is considering a rule change this month that could allow it, per HousingWire.
Between the lines: Homes sold outside the MLS typically went for nearly $5,000 less than those listed on the MLS, per a Zillow study analyzing sales over the past two years.
- Off-MLS listings often include ultra-luxury and celebrity properties, plus houses sold directly by owners or builders. (Zillow's research excludes new builds and home sales above $10 million, among other caveats.)
Zoom in: Homes in the Boston metro area typically sold for $26,500 less (4% lower) than those listed on the MLS in 2023 and 2024.
- In Massachusetts, homes sold off the MLS typically sold for $20,000 less (3.4% lower) than those on the MLS in that same time frame.
What they're saying: Sellers should have "a choice of where, when, and how to advertise their home for sale," Robert Reffkin, CEO of Compass, one of the largest U.S. brokerages, tells Axios.
- Private listing advocates like Reffkin say the status quo hurts home values by making sellers reveal details such as price drops and time on the market.
Reality check: Some real estate experts and consumer advocates warn that moving listings to private networks could not only prevent sellers from getting top dollar, but also limit buyers' access to an already short supply of homes.
- Listing on the MLS gives "sellers exposure to a wide range of buyers and [provides] buyers access to a wide range of properties," Stephen Brobeck, senior fellow at the Consumer Policy Center, tells Axios.