Prudential Select Properties soaring as national, local markets strengthen

Prudential Select Properties outperforming market
Markets in 54 out of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity, according to the National Association of Home Builders/First American Leading Markets Index (LMI), released recently.

Housing trends in St. Louis also give plenty of reasons for optimism going into 2014. Nationwide, the index’s score of .86 indicates that, based on current permits, prices and employment data, the nationwide market is running at 86 percent of normal economic housing activity. The index estimates that the St. Louis market is running between 75-82 percent of normal activity.

The average price of homes sold in St. Louis, according to the St. Louis Association of Realtors, was at $191,307 heading into December — up from 2012’s $175,990 average. The number of homes sold (15,088) was also on pace to top 2012’s mark of 15,224.

According to a MarketTrends Report from SLAR, the median sales price and average sales price for homes in St. Louis City was up 33.1 and 26 percent, respectively, in October. In St. Louis County, median sales and average sales price were both up 18.9 percent from the previous year and closed sales were up 3.5 percent.

The news is even more encouraging at Prudential Select Properties as the company has consistently outperformed the market in several key areas, including average sales price. PSP has also seen a 40-percent increase in total closed volume from 2012.

“We couldn’t be more encouraged about the overall strength and health of the company,” PSP President Maryann Vitale said. “Nationally and locally, we’re seeing the housing market steadily improve. But the statistics and trends we’ve seen within our company indicate that we should be poised to really stand out and excel in 2014.”

The LMI figures for November showed that 55 housing markets were operating at or above their last normal levels and the nationwide market was operating at 85 percent of normal growth. LMI date for the two months were released simultaneously because of the delay in collecting data during the partial government shutdown in October.

“This index shows that most housing markets across the nation are continuing a slow, gradual climb back to normal levels,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “Policymakers must guard against actions that could impede or even reverse the modest gains of the past year.”

The LMI shifts the focus from identifying markets that have recently begun to recover, which was the aim of a previous gauge known as the Improving Markets Index, to identifying those areas that are now approaching and exceeding their previous normal levels of economic activity. More than 350 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For single-family permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics. An index value above one indicates that a market has advanced beyond its pervious normal level of economic activity.

 

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