Prince George's County, Maryland
February 2023 Market Watch
Prince George's Home Sales:
Sales Volume Increases 6.9% Over January
as Home Supply Continues to Drop
Landover, MD, March 2023 - The Prince George's County Association of REALTORS® (PGCAR) reports the strong demand for Prince George's County homes continues to outpace supply, resulting in all-time record highs in Median Sold Price ($400,000) and Average Sold Price for February. Average Sold Price in February was $412,264, a 1.1% increase over January and 2.1% increase over February 2022.
Prince George's County saw 534 Closed Sales and 762 New Pending Sales in February, while February's Active Listings only averaged 895. With home sales activity greatly outnumbering Active Listings for the second consecutive month, the inventory of listed homes for sale dropped to a 1.1-month supply in February, meaning that if no new listings are added, current listings would sell out in 1.1 months.
Even with a 10.1% drop in Active Listings from January, New Pending Sales remained essentially the same as January (762 in February versus 765 New Pending Sales in January), and Closed Sales increased 6.2% (534 in February versus 503 in January). This pushed the Contract Ratio (Pending Contracts per Active Listing) to 1.30, a 24.6% increase over January. A rising Contract Ratio shows movement towards a Seller's market. All market indicators point to the continued strength of the Prince George's County home market and the added attractiveness and relative affordability of Prince George's County within the greater Washington, DC region.
The concern remains lack of inventory to meet the demand for Prince George's County homes. Several new home developments are scheduled throughout 2023, including a variety of 50+, metro-friendly, rural and urban communities. We anticipate these new "for sale" homes will bring more homebuyers back into the market, rather than diminishing the unmet demand for County homes.
| February 2023 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $219,398,948 | - 23.7% | + 6.9% |
| Closed Sales | 534 | - 25.7% | + 6.2% |
| Median Sold Price | $400,000 | + 2.6% | 0% |
| Average Sold Price | $412,264 | + 2.1% | + 1.1% |
| Median Days on Market | 27 days | + 145.5% | - 20.6% |
| Average Days on Market | 38 days | + 58.3% | 0% |
| New Pending Sales | 762 | - 22.9% | - 0.4% |
Rachel Jefferies, PGCAR President and Associate Broker of Keller Williams Preferred Properties, provides insights on the economic and lifestyle benefits of homeownership. She proudly states: "The Prince George's County home market continues to outperform regional and national market trends. Homebuyers continue to be drawn to Prince George's County. We enjoy relative affordability within the greater Maryland-DC-Virginia region, and are a premiere destination for jobs, business ownership, recreation and culture. The number of Closed Home Sales increased 6.2% over January, in spite of the winter timing, increasing interest rates, and a critically low inventory of "for sale" homes. In fact, Prince George's County home values reached all-time February record highs. February Prince George's Median Sold Home Price increased 2.6% over 2022 to $400,000; Average Sold Price increased 2.1% over 2022 to $412,264.
The demand for Prince George's County homes is high. Home values are strong. With demand continuing to outpace supply, we have crossed over into a Seller's market. It's a great time to sell!
While increasing interest rates and still-present inflation are seriously affecting affordability, these economic threats also make homeownership more attractive. Homeownership is seen as the safest investment, as it has a long track record of increasing in value over any 10-year period. The purchase of a home also allows you to exchange a monthly rental payment for a predictable monthly mortgage payment, which builds equity and wealth. A 2021 survey by the National Association of REALTORS® shows homeowners have a net worth of $300,000, about 40 times the $8,000 net worth of renters. This mirrors a 2020 Federal Reserve Board survey.
Buyers, make the most of your homebuyer experience by letting a REALTOR® introduce you to lenders experienced in a variety of mortgage options and incentives. Maryland SmartBuy 3.0 financing allows a homebuyer to pay off up to $50,000 in student debt. Pathways to Purchase provides up to $10,000 towards purchase of a first home in Prince George's. These are just two of several homebuyer programs with lower interest and downpayment assistance opportunities."
Jefferies added: "Please contact a REALTOR® early in your selling or buying decision. Like any worthwhile endeavor, buying or selling a home is hard work. Plan for success by engaging a REALTOR®'s expertise to navigate you through and manage the myriad details of setting a budget or price, home searches and showings, inspections, appraisals and more; and guide you towards favorable outcomes in the important financial and lifestyle decisions of buying or selling a home."
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.
CONTACTS:
Rachel Jefferies, 2023 PGCAR President - 240-737-5000, RachelLJefferies@gmail.com
Mike Graziano, Executive Vice President - 301-306-7900, mikeg@pgcar.com
