Bright MLS study, largest of its kind of more than 1 million home sale transactions, finds that off-MLS properties sell for less
- Premium sale price of listings on the MLS increased to 18% in 2022 from 13% in 2020
- The open MLS marketplace provides equal and accessible access to homes for all consumers, ensuring that all buyers have an opportunity to view and consider properties
Home sellers who list their properties on a multiple listing service (MLS) have continued to see a significant financial benefit, according to a new analysis of over 1 million homes sold throughout the Mid-Atlantic. Although homes marketed through the MLS consistently reflect an average price above homes not marketed through the MLS, the gap grew during the pandemic housing boom to 18% or $53,890 – a clear benefit to homeowners looking to maximize the return on their home sale.*
The analysis, conducted in collaboration with Dr. Kevin Gillen, Senior Research Fellow, Lindy Institute for Urban Innovation at Drexel University, utilized Bright MLS property listing information and public records to examine a total of more than 1 million home sales transactions taking place in the five-state Mid-Atlantic region and the District of Columbia between January 2019 and the first quarter of 2023. To ensure consistent data for both on- and off-MLS transactions, the analysis took into account factors that influence home prices, such as construction type and year, square footage, property features, and distance to the region’s central business district, as well as neighborhood characteristics.
“The research underscores the clear value of an open, clear and competitive marketplace for sellers,” said Bright MLS Chief Economist Dr. Lisa Sturtevant. “The housing market may be settling into a ‘new normal’ around low inventory coupled with higher mortgage rates. What hasn’t changed—and has only increased—is the benefit to buyers and sellers of promoting a home on the open marketplace.”
Homes sold through the MLS commanded an 18.3% higher price than those sold off-MLS in 2022. This amounts to an additional $53,890 to the seller for the typical home sold last year, with MLS-listed homes in the Mid-Atlantic’s largest metros of Philadelphia, Baltimore, and Washington, D.C., selling for 15.1%, 18.4% and 19.7% more on average, respectively.
The study also found that the vast majority of homes sold were marketed through the MLS, with the share of on-MLS listings in the Mid-Atlantic reaching 85.5% in 2022. The share of on-MLS listings has also been increasing in all major metro areas in the Bright MLS footprint. In the Baltimore metro area, 82% of homes sold in 2022 were listed on the MLS. In Philadelphia, the on-MLS share was 87% and was close to 90% in the Washington D.C. metro area. To view the full report, including charts and methodology, please visit BrightMLS.com/OnMLSStudy
*On-MLS increase based on the average sale price of homes marketed through Bright MLS compared to other similar homes in the same area. Every home is unique and the housing market is subject to fluctuation. Results cannot be guaranteed.
About Bright MLS
Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation’s most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100k real estate professionals, enabling their delivery on the promise of home to over half a million home buyers and sellers monthly. In 2022, Bright subscribers facilitated $122B in real estate transactions through the company’s platform. Learn more at Bright MLS.com.
SOURCE Bright MLS
