Hot America Housing market Shows no signs of cooling, according to the National Association of Realtors, as house prices rose a record 17.2% annually in March.
As demand for homes shows no signs of declining, real estate agents are increasingly using a controversial practice known as pocket lists or “whisper lists” to connect sellers with potential home buyers.
A pocket listing is any home that is listed for sale but is not listed on the Local Multiple Listing Service (MLS), which is a private database that real estate agents use to exchange information.
According to an analysis by brokerage firm Redfin, the number of pocket listings has grown in recent years, increasing from 2.4% to 4.0% since November 2019.
It also shows no signs of slowing down as the number of pocket ads has increased every month this year.
IN Wall street journal originally reported a rise in pocket listings this week.
Sometimes pocket lists happen because the house is taken over so quickly that the broker doesn’t have time to put it in the MLS. According to the National Association of Realtors, properties were on the market for an average of just 17 days last month, up from 18 days in March and 27 days a year ago.
In other cases, a potential seller may not list their home publicly just for privacy reasons. This can keep the seller’s name out of the news, but it can also prevent him from getting the best price for his home due to lack of awareness.
Celebrities often use pocket listings for both buying and selling real estate. For example, Dwayne “The Rock” Johnson bought a Mediterranean-style estate in Beverly Park, California last month from comedian Paul Reiser, and the deal closed outside the market, according to data New york post…
However, some industry leaders argue that the exceptional, secretive nature of pocket lists leads to discrimination and an unfair market.
“When homes don’t go to the open market, it plays into the worst fears of the outsiders,” Redfin CEO Glenn Kelman told FOX Business. “Nobody wants to feel like there is a secret handshake, that you have to work with the right guy, belong to the right club. It’s just a part of the smoky, behind-the-scenes past. “
National Association of Realtors established Clear cooperation policy last year with the intention of suppressing pocket listings by requiring all brokers to list homes on the MLS within one business day of a property sale.
But even here there is room for “exclusive offices” where brokers can hide the listing from the public and only sell it on their office network.
At the moment, the housing market remains so competitive that potential buyers are offering more than just money for a property.
Kellman tweeted this week that a Bethesda, Maryland woman who worked with Redfin made a promise Name her firstborn after the seller, and still lost.