Prince George's County, Maryland
June 2023 Market Watch
Prince George's Home Sales:
Low Inventory Rewards Home Sellers with Faster Sales at Higher Sold Prices
Landover, MD, July 2023 - The Prince George's County Association of REALTORS® (PGCAR) reports that the high demand for Prince George's County homes versus limited supply of "for sale" homes continues to be the clear driver of the current home market. June saw 808 Closed Sales, just 0.9% under May's 815 Closed Sales. This was at lower Days on Market while setting all-time record highs in Average and Median Sold Prices for June! Average Sold Price was $446,851, increasing 3% from May and 3.9% over June 2022. Median Sold Price was $424,000, increasing 0.2% over May and 2.4% over June 2022. In addition, Median Days on Market (the time between Listing and Contract signing) fell another 10% from May to June, from 10 to 9 days.
Total Contract Activity for Prince George's County homes (808 Closed Sales plus 859 New Pending Sales in June) has greatly outnumbered Active Listings (averaging only 938 in June) for every month of 2023.
We are excited that New Listings did increase by 7% from 853 in May to 913 New Listings in June. This increased the Months of Supply to 1.25, meaning that if no new listings are added, current listings would sell out in 1.25 months.
The increased amount of New Listings also eased the Contract Ratio to 1.28 Pending Contracts per Active Listing, a 19% decrease from May. It's still a Seller's Market, although an increasing number of Sellers and new developments are opening up more opportunities for Buyers, bringing us closer to a balanced market. 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. Economists still predict that mortgage rates are nearing a peak, and will stay stable or decrease nominally through the end of 2023 and 2024. Employment remains historically strong, inflation has decreased to 3% (nearing the Federal Reserve Board's goal of 2%), and the Consumer Confidence Index continues its upward trajectory. Increased availability and Consumer Confidence will bring more people desiring to be homeowners into the market. The biggest concern is that Total Sales continue to be hampered by an inventory which remains lower than the unmet demand, limiting the opportunities for more individuals and households to realize the generational wealth building that homeownership brings.
|June 2023||Year Over Year (YoY)||Month Over Month (MoM)|
|Total Sold Dollar Volume||$357,998,207||- 9.9%||+ 2%|
|Closed Sales||808||- 14.4%||- 0.9%|
|Median Sold Price||$425,000||+ 2.4%||+ 0.2%|
|Average Sold Price||$446,851||+ 3.9%||+ 3%|
|Median Days on Market||9 days||+ 12.5%||- 10%|
|Average Days on Market||20 days||+ 33.3%||- 23.1%|
|New Pending Sales||859||- 13.4%||- 4.3%|
Rachel Jefferies, PGCAR President and Associate Broker of Keller Williams Preferred Properties, provides insights on the economic and lifestyle benefits of homeownership. She shared both the excitement and challenges of the market: "Homes are selling fast, and Prince George's County home values remain strong! Through the first half of 2023, Prince George's County home values set new all-time record highs for all six months. In June, the Prince George's Median Sold Home Price rose to $425,000, a 2.4% increase over 2022. Average Sold Price increased 3.9% over 2022 to $446,851. Prince George's County still enjoys relative affordability within the greater Maryland-DC-Virginia region and 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 continues to reward Prince George's County Sellers with faster sales and higher Sold Prices. More Sellers means more opportunities for Buyers. Also, locking into a steady monthly mortgage payment helps protect against inflation, unlike rent payments which increased an average 5.77% annually from 2017 to 2022. The ability to stabilize costs and build equity as you pay your mortgage and home values appreciate helps make homeownership the greatest indicator of generational wealth.
Jefferies added: "Please contact a REALTOR® early when considering buying or selling a home. Let your local REALTOR®'s experience and expert knowledge work on your behalf to set a favorable and realistic budget or price; manage home searches and showings, inspections, appraisals, negotiations and myriad other details; and guide you towards a favorable outcome in buying or selling a home. In short, let a REALTOR® save you time and stress!
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.
Your REALTOR® can also connect you with lenders experienced in a variety of mortgage options and incentives. There's a wide range of programs that can lower interest rates, assist with your downpayment, lower closing costs and taxes, or help fund home renovations. These programs are available to a wide range of homebuyers, including households earning up to $210,980 depending on property location and household size; those with certain professions such as teachers and police; Veterans and military families; graduates with student debt; and short sale or foreclosed property buyers. These and so many more opportunities exist to realize your dream of homeownership.
Contact a REALTOR® today if considering selling or buying 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.