Prince George's County, Maryland
July 2023 Market Watch
Prince George's County Home Sales:
Home Values and Demand Hold
as Interest Rates Hit 7% and Low Inventory Persists
Landover, MD, August 2023 - The Prince George's County Association of REALTORS® (PGCAR) reports that Prince George's County home values and demand are holding strong, through the continuing limited supply of "for sale" homes and current rise in mortgage interest rates. Prince George's Market continues setting all-time record highs, reaching new records in Average and Median Sold Prices for July! Average Sold Price was $450,631, increasing 0.9% from June and 7.3% over July 2022. Median Sold Price was $435,000, increasing 2.4% over June and 7.4% over July 2022. In addition, Median Days on Market (the time between Listing and Contract signing) stayed the same from June to July at 9 days.
July saw 697 Closed Sales, 13.7% under June's 808 Closed Sales. Despite most eyes being on the 30-year mortgage interest rate reaching 7%, the clear driver of lower sales is the critically low inventory. Available homes are selling. The Total Contract Activity for Prince George's County homes (697 Closed Sales plus 795 New Pending Sales in July) has greatly outnumbered Active Listings (averaging only 1023 in July) for every month of 2023.
New Listings decreased by 3.3% from 913 in June to 883 New Listings in July. The Months of Supply increased slightly to 1.4 from 1.3 in July, meaning that if no new listings are added, current listings will sell out in 1.4 months.
The July Contract Ratio was 1.16 Pending Contracts per Active Listing, a 9.4% decrease from June. It's still a Seller's Market, with home values increasing and Buyers seeing a better value in home ownership. All market indicators continue to point to the long-standing strength of the Prince George's County home market, especially given the attractiveness and relative affordability of Prince George's County within the greater Washington, DC region.
The lack of inventory to meet the high demand for Prince George's County homes remains a critical need to be solved. Historically low unemployment rates dropped even further in July (from 2% to 1.8% in Maryland, from 3.6% to 3.5% nationwide) and the Consumer Confidence Index continues its upward trajectory. The biggest concern is that Total Sales continue to be hampered by an inventory that remains lower than the unmet homeownership demand, limiting the opportunities for more individuals and households to realize the generational wealth-building and value that homeownership brings.
|July 2023||Year Over Year (YoY)||Month Over Month (MoM)|
|Total Sold Dollar Volume||$311,196,910||- 12.5%||- 13.1%|
|Closed Sales||697||- 18.5%||- 13.7%|
|Median Sold Price||$435,000||+ 7.4%||+ 2.4%|
|Average Sold Price||$450,631||+ 7.3%||+ 0.9%|
|Median Days on Market||9 days||0.0%||0.0%|
|Average Days on Market||21 days||+ 40%||+ 5%|
|New Pending Sales||795||- 9.2%||- 7.5%|
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! Through the first half of 2023, Prince George's County home values set new all-time record highs for all six months. That trend continues! In July, the Prince George's Median Sold Home Price rose to $435,000, a 7.4% increase over 2022. Average Sold Price increased 7.3% over 2022 to $450,631. Prince George's County still enjoys relative affordability within the greater Maryland-DC-Virginia region. It is a highly desirable location for homeownership, allowing our County to outperform regional and national market trends.
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 and higher Sold Prices. Homebuyers gain a home to call their own, and the ability to lock in a steady monthly mortgage payment which better protects them against inflation. Furthermore, homeowners gain the opportunity to decrease future costs if interest rates decrease and they refinance, and as they take advantage of building equity which may increase their creditworthiness. The ability to stabilize costs, build equity, and strengthen financial history as a homeowner (1) pays their mortgage and (2) home values appreciate helps make 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, home finance options such as mortgage assumption and Seller financing are gaining awareness and usage as the average difference widens between Sellers' current mortgage rates and Buyers' new mortgage rates. These options present both risks and rewards; are you comfortable choosing between varying financial choices?
Buyers, work with your REALTOR® to help find the right home for you. Whether moving or buying your first home, a market expert can reveal more options to best match your family, work, and lifestyle desires and needs. New construction is becoming a larger percentage of available homes. Are these on your watch list?
Also, let your REALTOR® connect you with lenders experienced in a variety of mortgage options and incentives. A wide range of financing options and homebuyer programs exist which can lower interest rates, downpayment requirements, closing costs, and/or taxes, or help fund home renovations. 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.