Prudential Select Properties outperforming market despite challenges
September housing numbers revealed home prices are still slowly rising, which is great news for housing. However, existing-home sales fell 1.9 percent, and many in the industry are worried that this could be signaling a potential turn for the housing market and its recovery, especially in light of the recent government shutdown, which will surely impact October's numbers.
According to Don Frommeyer, president of the Association of Mortgage Professionals (NAMB), the slowing rate of purchase cannot be attributed directly to mortgage rates and for most, it’s still an ideal time to buy.
“There are a lot of factors that play into the affordability of houses that potential home owners should consider before house hunting,” says Frommeyer. “With higher home prices, stagnant or barely rising salaries and rising mortgage rates coupled with the government shutdown and debt ceiling panic, some were scared away from the housing market and economy in general. However, compared to the last five years we’re still seeing great qualities for purchasing real estate.”
In addition, there are signs that interest rates will be decreasing or holding steady in the coming months. “After speculation of drastic cuts in bond purchasing, last month’s announcement from the Federal Reserve to not lower its amount of monthly bond purchases was welcomed by the mortgage industry,” continues Frommeyer. “The strategic move keeps interest rates low and helps continue to attract buyers to the housing market.”
Prudential Select Properties President Maryann Vitale is also optimistic about the direction the industry is heading despite the hurdles the market has faced.
“We’ve consistently been outperforming the market in several key areas,” Vitale said.
As of October 1, PSP had outperformed the market in average sales price ($186,719 to $162,830) and a 40-percent increase in total closed volume from 2012.
“Moving into the fourth quarter, we are positioned to close out what’s been a profitable year,” Vitale said.
For more information, visit www.namb.org.