MLS Information Sharing Intensity and Housing Market Outcomes

Abstract

The primary function of Multiple Listing Services (MLS) in housing markets is to disseminate information from listing brokers to other member brokers about houses listed for sale. This study examines the impacts of MLS-member information sharing intensity on housing market outcomes, with information sharing intensity measured as the average daily number of times MLS members view an individual house's listing during its marketing period. We develop a theoretical model and derive equilibrium. The model predicts that increased information sharing intensity leads to greater probability of sale, reduce time on market, and higher house prices. Analysis of data from 32,102 listing records validates the model's propositions. We find that a one-unit increase in the average daily number of views of a house's listing increases the probability of a successful transaction by 5.7% increases selling price by 0.2%, and reduces marketing time by 1.6 days.

Keywords: Information Sharing; Multiple Listing Service; House Prices; Time on Market; Probability of Sale; Brokerage