Secret “whispered announcements” on the rise in booming US real estate market | KOLR
Homes that are never even listed sell quickly, experts say. They are called “whispered lists”.
Whisper listings are residential properties sent directly to a broker who only allows specific clients to view the home. It is not publicly advertised or listed on the region’s Multiple Listing Service (MLS).
It’s an attractive option for sellers who don’t want to go public, don’t want their privacy disrupted, or are hoping for a quick sale. But that leaves out other buyers who are not part of this small circle of customers and makes the housing supply even more limited for those seeking the public market.
This controversial practice has been around for several years, but it is growing in popularity during this booming real estate market, especially in places like Florida. According to Redfin, the number of whispered listings has fallen from 2.4% to 4.0% since November 2019, and there is no sign of slowing down.
“Nothing like this for 18 years that I have been doing this job. It’s absolutely amazing what’s going on here, ”said real estate agent Liz Hogan in Palm Beach, Florida.
The National Association of Realtors has discouraged the practice, according to the Wall Street Journal, adopting a new policy that requires its agents to list a property publicly within one business day. But there are exceptions, of course.
Meanwhile, selling prices for existing homes in the United States hit a new record last month with the biggest year-over-year jump in National Association of Realtors history. A shortage of properties and low interest rates, among other things, fueled the real estate boom.