Prince George's County, Maryland
December 2023 Market Watch
Prince George's County Home Values Rise 4.9% Over 2022
as Lower Interest Rates and a Strong Economy
Increase Homebuyer Demand
Landover, MD, January 2024 - The Prince George's County Association of REALTORS® (PGCAR) reports that Prince George's County home values continue to experience strong year-over-year growth. December Median Sold Price was $424,995, increasing 4.9% over December 2022 and 1.2% over November. Average Sold Price was $431,001, increasing 1.4% over December 2022 and 0.6% over November. These home values once again set record highs for December's Average and Median Sold Prices! This pairing of large annual gains with month-over-month increases are especially notable for December. With fewer buyers typically looking in the coldest months, both sales and pricing experience a lull before spring. While high homeownership demand is driving historically quick sales at strong appreciation, lack of inventory is holding back consistent sales growth. The average number of Active Listings decreased 19%, from 1,179 in November to 995 in December.
December Closed Sales increased over the prior month, while New Pending Sales decreased. December saw 612 Closed Sales, a 2.2% increase from November and 16.3% decrease from 2022. New Pending Sales decreased 13.3% from November while increasing 9.2% over 2022. This was as the average 30-year mortgage interest rate continued to decrease more substantially to end the month at 6.61%.
Available "for sale" homes are still selling fast compared to the start of 2023. We began 2023 with 34 Median and 38 Average Days on Market (the time between Listing and Contract signing) and ended 2023 at 20 Median and 28 Average Days on Market. Total Contract Activity for Prince George's County homes (612 Closed Sales plus 620 New Pending Sales in December) has outnumbered Active Listings (averaging 995 in December) for every month of 2023. Only 540 New Listings came on market in December, plummeting 26% from November. Months of Supply decreased from 1.65 to 1.35 in December, meaning current listings will sell out in 1.35 months if there are no new listings.
The December Contract Ratio was 1.06 Pending Contracts per Active Listing, up from 0.93 in November and 0.78 in December 2022. A higher Contract Ratio indicates the market is moving in favor of the Seller. As the Contract Ratio hovers near 1.0, it also indicates we are still in a reasonably well-balanced market between Sellers and Buyers, with Sellers enjoying rising Sold Prices, and Buyers seeing a better value in home ownership with a bit more choice and decision-making time in their home search.
All market indicators show the strength of the Prince George's County home market. With the economy, homebuyer demand, and interest rates all trending favorably, it's an excellent time to buy or sell in Prince George's County.
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Gene Sementilli, PGCAR President and CENTURY 21® New Millennium Associate Broker, provided insights on market opportunities and challenges: "This winter is an exceptionally great time to sell or buy a home in Prince George's County. For Sellers, we're at a critically low inventory of "for sale" homes, which tends to increase Sold Prices and encourages home buyers to commit more quickly when finding a desirable home. Especially, if your home is well staged, priced and marketed, you will attract showings which lead to a contract. For Buyers, you are competing against fewer active searchers, allowing you better access to available homes and less pressure to make an immediate contract decision. Going into 2024, home buyers, sellers and builders are also enjoying the luxury of falling mortgage rates. Locking in a rate now guarantees your maximum rate and may still allow you the option to lower your rate if rates decrease. Please seriously consider beating the expected rush back into the market this spring. Although rates are expected to decrease towards the lower 6% range through 2024, home values are expected to increase more quickly during spring. While you can't typically negotiate a price down in a tight market, you can refinance a loan to a lower mortgage rate.
Prince George's County home values continue to increase, allowing most Sellers a substantial gain. Prince George's County still enjoys relative affordability within the greater Maryland-DC-Virginia region, another reason for our long-time home market resilience and home value strength. Prince George's homeownership is a great long-term investment! Pursue your homeownership dream in earnest now, prior to the more stressful, hectic spring market pace and added pressures to hasten offer consideration times. Gain a home to call your own in a high-value market, helping build equity and financial security.
Contact a REALTOR® now if considering buying or selling a home. The lower mortgage rates, lower inflation, and strong job market will entice more prospective home sellers and home buyers to jump into the market. Take advantage of your REALTOR®'s market experience and expertise to efficiently guide you and manage your journey from setting a buying budget or sales price to a successful contract!"
Sementilli added: "Also ask your REALTOR® to connect you with a home financial expert to best leverage your money. There are constantly changing incentives for buying a home, including downpayment, closing costs, and tax savings. There's also an increasing array of mortgage choices, including reverse mortgages, Seller financing, Veterans Home Loans, home renovation loans, and so many more."
Increase your opportunities and set your path for success! Let your local REALTOR® work on your behalf as a mediator, manager, and guide to save you time and stress as a homebuyer or seller."
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 homeownership and private property rights.