Compass CEO defends private listings, says MLSs make homes look ‘damaged’

As consumers contemplate a softening housing market thanks to rising inflation and mortgage rates, Compass International Holdings CEO Robert Reffkin is warning prospective sellers of what he feels are the risks of listing a property on the open market. In a segment on CNBC’s The Exchange Tuesday afternoon, Reffkin told CNBC’s Kelly Evans that even though home prices have risen year-over-year for the past 39 months, in September, 43% of all homes on the market had a price drop in their listing history. HousingWire Data shows that an average of 42.2% of active single-family listings nationally had undergone a price reduction during September, broadly consistent with Reffkin’s figure. “As an unintended consequence, days on market is the killer of value, price drop history is the killer of value and when you have extended days on market or price drops on your listings, it leads to some sellers taking their homes off the market,” Reffkin said. “So 6% of the homes on the market last month were actually taken off the market because sellers don’t want to look stale.” HousingWire Data provides historical context for relisting activity. Nationally, the percentage of single-family listings re...