Prince George's County, Maryland
August 2023 Market Watch
Prince George's County Home Sales:
Monthly Home Sales Increase 4.6%
on 1.5% Increase in Available Homes for Sale
Landover, MD, September 2023 - The Prince George's County Association of REALTORS® (PGCAR) reports that Prince George's County home values and demand remain strong. A 1.5% increase in available home inventory allowed Closed Home Sales to increase 4.6% and New Pending Sales by an amazing 9.7% from July to August. All-time record highs were again set for August's Average and Median Sold Prices! Average Sold Price was $435,745, decreasing 3.3% from July while increasing 4.8% over August 2022. Median Sold Price was $425,000, decreasing 2.3% from July and increasing 6.3% over August 2022. County homes are also selling fast, in 9 Median Days on Market (the time between Listing and Contract signing) for the third consecutive month.
Available homes are selling. August saw 729 Closed Sales, 4.6% above July's 697 Closed Sales. Total Contract Activity for Prince George's County homes (729 Closed Sales plus 872 New Pending Sales in August) has outnumbered Active Listings (averaging only 1,038 in August) for every month of 2023. New Listings held steady, decreasing by 1.9% from 883 in July to 866 New Listings in August. Months of Supply increased to 1.4 from 1.3 in August, meaning that if there are no new listings, current listings will sell out in 1.4 months. Continuing home demand and values amid 30-year mortgage rates lingering above 7% are further evidence that the availability of "for sale" homes is the critical driver of the Prince George's home market.
The August Contract Ratio was 1.16 Pending Contracts per Active Listing, equal to July and 14.9% greater than August 2022. We are still in a Seller's Market, with home values increasing and Buyers seeing a better value in home ownership.
All market indicators show the strength of the Prince George's County home market. Prince George's County is an especially attractive, affordable choice in the greater Washington, DC region. Low unemployment rates (1.8% in Maryland, 3.5% nationwide) and an increasing GDP (+2% in 1st Quarter 2023, +2.1% in 2nd Quarter 2023) continue to indicate improving economic health, expanding the desire for homeownership. The biggest concern is that inventory remains so much lower than homeownership demand, which hampers Total Sales and the opportunities for more individuals and households to realize the generational wealth-building and value of homeownership.
|August 2023||Year Over Year (YoY)||Month Over Month (MoM)|
|Total Sold Dollar Volume||$314,524,140||- 8.6%||+ 1.1%|
|Closed Sales||729||- 12%||+ 4.6%|
|Median Sold Price||$425,000||+ 6.3%||- 2.3%|
|Average Sold Price||$435,745||+ 4.8%||- 3.3%|
|Median Days on Market||9 days||- 18.2%||0%|
|Average Days on Market||18 days||0%||- 14.3%|
|New Pending Sales||872||- 7%||+ 9.7%|
Rachel Jefferies, PGCAR President and Associate Broker of Keller Williams Preferred Properties, provides insights on homeownership's economic and lifestyle benefits. She shared the excitement and challenges of the market: "Homes are still selling fast, and Prince George's County home values remain strong and increasing! Prince George's County home values set new all-time record highs for every month of 2023! In August, Prince George's Median Sold Home Price was $425,000, a 6.3% increase over 2022. Average Sold Price increased 4.8% over 2022 to $435,745.
Prince George's County is a great place to live! We enjoy relative affordability within the greater Maryland-DC-Virginia region, allowing our County to outperform regional and national market trends. The County offers a unique diversity of employment, educational, cultural, entertainment, and rural/urban lifestyle opportunities. Highlighting just one area, education, the Prince George's County Public School System started 2023/2024 with five new schools and one more opening soon, all funded by private-public partnerships! The Prince George's County Community College, known for strong academics and career readiness, also includes a high school program, where the college's educational and career resources are further leveraged for a wide range of magnet-like high school tracks. Many students also earn a 2-year Associate Degree upon their high school graduation.
It's a great time to sell or buy! High demand and low inventory continue to reward Prince George's County Sellers with faster sales at full Listing Price. Homebuyers gain a home to call their own and the ability to lock in a steady monthly mortgage payment, which protects them against inflation. Furthermore, homeowners can build equity, and decrease future costs if interest rates decrease. Homeowners stabilize costs and increase equity as (1) they pay their mortgage and (2) home values appreciate, making homeownership the greatest indicator of generational wealth."
Jefferies added: "Please contact a REALTOR® early if considering buying or selling a home. Market dynamics change. For example, mortgage assumption and Seller financing options are gaining usage as the average difference widens between Sellers' current and Buyers' new mortgage rates. These options present risks and rewards; are you comfortable choosing between financial options?
Buyers, work with your REALTOR® to increase your opportunities for success. A market expert can reveal more options to match your family, work, and lifestyle desires and needs. 56% of August home sales happened within 10 days of their listing. Why not have a REALTOR® keep tabs on "Coming Soon" and current listings for you? New construction is a larger percentage of currently available homes. Are these on your watch list?
In short, do not delay. Sellers, let your REALTOR® best present your home listing. Buyers, let your REALTOR® connect you with lenders experienced in various mortgage options and incentives. Many financing options and homebuyer programs exist to lower interest rates, downpayment requirements, closing costs, and/or taxes. Some options help fund home renovations, forgive student debt, outfit a home for disabilities, and more. These programs are available to a much wider range of potential homebuyers than most realize, across a wide variety of neighborhoods and circumstances -- and they can save you hundreds monthly or thousands upfront. These and so many more opportunities exist to realize your dream of homeownership.
Contact a REALTOR® today if considering selling or buying a home! Let your local REALTOR®'s work on your behalf as mediator, manager, and guide, save you time and stress!"
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 4,000 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 homeownership and private property rights.