Real Estate: Off-Market Listings Integral to Housing Landscape, Says Compass Economist

Mike Simonsen, the chief economist for Compass, recently stated that the current discourse regarding off-MLS (Multiple Listing Service) property marketing overlooks a significant number of existing private listings. Simonsen suggests that instead of inventing off-market sales, Compass, through Compass International Holdings, actually innovated by providing a formalized and organized method for an activity already common within the real estate sector, according to Inman. Simonsen points out that a considerable portion of properties are already changing hands without being publicly advertised on the MLS. He indicates that these transactions, often occurring privately between agents or through exclusive networks, represent a major segment of the housing market that is frequently omitted from the debate around official listing practices. The economist clarifies that the company's platform didn't initiate the concept of selling homes outside of the traditional MLS system. Rather, it provided a technological solution and a framework to streamline and enhance an existing industry trend. This perspective suggests that the discussion should acknowledge the long-standing presence of these private transactions when evaluating the impact and role of off-MLS marketing strategies. Simonsen's remarks imply that focusing solely on the "off-MLS" aspect without recognizing the underlying market dynamics could lead to an incomplete understanding of how properties are bought and sold today. He advocates for a broader consideration of all types of transactions, including those that do not appear on public listing services, to fully grasp the current state of the real estate market. His analysis challenges the notion that private listings are a new phenomenon exclusively introduced by modern real estate platforms. Instead, he positions them as an established part of the selling process that has now been given a more structured and accessible format through companies like Compass. This perspective re-frames the debate, shifting the focus from whether private listings exist to how they are managed and integrated into the broader real estate ecosystem.