Prince George's County, Maryland
Market Watch - July 2020
Strong Buyer Demand and Low Interest Rates
Yield Highest July "New Pending Sales" in 10 Years
Landover, MD - The Prince George's County Association of REALTORS® (PGCAR) reports that the local real estate market in July showed substantial strength culminating in the best "new pending sales" market in 10 years.
There were 1,261 new pending sales recorded in July, a 7.3 percent increase from July 2019, a 5.2 percent increase from June 2020, and the highest number of July pending sales in 10 years. Closed sales were at 949, a less than one percent decrease from July 2019. July 2020 total sales volume was $335.3 million, a 7.1 percent increase from July 2019, and a 3.3 percent increase from June 2020. The Average Sold Price increased 8.4 percent from July 2019 to $355,619, signaling the County's extremely limited inventory of existing homes.
Even with average home sale prices increasing, Prince George's continues to be a viable and sought-after location in metropolitan Washington. As further indication that consumers are interested in buying homes, the Median Days on Market (DOM) was 12 days, a 20 percent decrease from July 2019 and the lowest median DOM in 10 years with the exception of April (10 days) and June 2020 (12 days). The average DOM was 27 days, down 6.9 percent from July 2019 matching the lowest average DOM that occurred this past May. In short, the ongoing pandemic and five months of local and national economic pressures have not discouraged buyers from entering the market. However, low sales inventory (detailed below) is evidence of seller apprehension.
The chart above details July activity compared to July's five-year average, an important longer-term measure of market trends. While Active Listings remain substantially lower, New Listings, Median Sold Price and Average Sold to Original Listing Price all increased. The supply of homes for sale remains at a five-year low of one month (representing 874 units) available for sale (versus a 1,631 historical July measure and two month's supply.) This important statistic means that if no new listings come on the market and with current demand, the supply will be exhausted in one month.
| July 2020 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $335,287,434 | + 7.1% | + 3.3% |
| Closed Sales | 949 | - 0.7% | + 3.2% |
| Median Sold Price | $341,500 | + 6.7% | + 0.3% |
| Average Sold Price | $355,619 | + 8.4% | + 0.8% |
| Median Days on Market | 12 days | - 20% | 0% |
| New Pending Sales | 1,261 | + 7.3% | + 5.2% |
Yolanda Muckle, PGCAR President and a professional REALTOR® with Long & Foster Real Estate Inc., shared: "The positive trend of PGCAR's pending sales tell us, despite the pandemic, there's still solid demand for home ownership. We are particularly pleased to see the continued boost in both average and median sale prices which signals that it's a great time to sell your home with many eager and qualified buyers seeking homeownership. Sellers who engage the service of a REALTOR® are best equipped to compete in today's marketplace. We are seeing summer 2020 trend nicely and continue to assert that Prince George's County continues to offer one of the best housing opportunities in the DC metro region."
The Voice for Real Estate in Prince George's County
PGCAR is the voice for REALTORS® in Prince George's County, Maryland. Representing more than 3,500 real estate professionals in the national capital area, PGCAR is an affiliate of the Maryland and National Association of REALTORS®. We are proud to serve our members and our community, and work to ensure professionalism in the industry. Our volunteers and staff work to offer services to real estate professionals and to provide avenues for our members to become more successful. We proudly work to promote and protect home ownership and private property rights.
