Prince George's County, Maryland
March 2023 Market Watch
Prince George's Home Sales:
Spring Market Opens with 40.6% Sales Surge
as Home Demand Continues to Outpace Supply
Landover, MD, April 2023 - The Prince George's County Association of REALTORS® (PGCAR) reports the Spring Market for home sales opened with an amazing 40.6% surge in Closed Home Sales, increasing from 534 in February to 751 Closed Sales in March. New Pending Contracts also grew, leaping 16.8% from February to 890 New Pending Contracts in March.
The strong demand for Prince George's County homes resulted in all-time record highs in Median Sold Price and Average Sold Price for March. Median Sold Price was $415,000, a 3.8% increase over February and a 2.5% increase over March 2022. Average Sold Price was $425,415, a 3.2% increase over February and a 2.1% increase over March 2022.
Contract activity for Prince George's County homes (751 Closed Sales plus 890 New Pending Sales) greatly outnumbered Active Listings (averaging 882 in March) for the third consecutive month. The 860 new "for sale" home listings in March kept the County steady at a 1.1-month supply, meaning that if no new listings are added, current listings would sell out in 1.1 months.
The marked rise in March sales activity pushed the Contract Ratio (Pending Contracts per Active Listing) to 1.35, a 3.8% increase over February. A rising Contract Ratio shows movement toward 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 lack of inventory to meet the demand for Prince George's County homes remains a concern. Three factors may help: 1) interest rates are continuing to ease closer to 6%, historically considered a good rate. 2) Several new home developments are scheduled throughout 2023, with a wide range of single family, condo, townhome, rural and urban communities beginning to come onto the market. 3) An increasing number of people who purchased second or investment homes during the pandemic are beginning to sell.
| March 2023 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $318,748,159 | - 20.3% | + 45.3% |
| Closed Sales | 751 | - 23.3% | + 40.6% |
| Median Sold Price | $415,000 | + 2.5% | + 3.8% |
| Average Sold Price | $425,415 | + 2.1% | + 3.2% |
| Median Days on Market | 19 days | + 137.5% | - 29.6% |
| Average Days on Market | 36 days | + 89.5% | - 5.3% |
| New Pending Sales | 890 | - 23.7% | +16.8% |
Rachel Jefferies, PGCAR President and Associate Broker of Keller Williams Preferred Properties, provides insights on the economic and lifestyle benefits of homeownership. She excitedly states: "Prince George's County home sales surged 40.6% last month, surpassing expectations and proving once again, what a highly desired location Prince George's County is for homebuyers and homeownership. Prince George's County continues to outperform regional and national market trends. We enjoy relative affordability within the greater Maryland-DC-Virginia region and are well-recognized as a premiere destination for jobs, business ownership, recreation, and culture.
In spite of low inventory, the Prince George's County Spring Market is hot! Home values are strong. In fact, Prince George's County home values reached all-time March record highs. In March, the Prince George's Median Sold Home Price rose to $400,000, a 2.6% increase over 2022. Average Sold Price increased 2.1% over 2022 to $412,264.
It's a great time to sell or buy! With 30-year interest rates easing downward towards 6% and 15-year interest rates averaging about 5.5%, now might be the ideal time to lock in a mortgage rate. Also, inflation is trending downward, yet the risks of it trending upward again remain. Meanwhile, homeownership remains as the safest investment. 1) Locking into a monthly mortgage rate and payment protects against inflation. 2) Homes have a long track record of increasing in value over any 10-year period. 3) Regular payment of a mortgage helps build equity and wealth. A 2021 National Association of REALTORS® survey showed homeowners have an average net worth of $300,000, about 40 times the $8,000 net worth of renters. This mirrors a 2020 Federal Reserve Board survey.
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 and requires research. Don't lose time, money and possibly a home contract while working to figure out, what a REALTOR® is already experienced in. Plan for success! Engage a REALTOR®'s expertise to manage the myriad of details of setting a budget or price, home searches and showings, inspections, appraisals and more; and guide you towards a favorable outcome in buying or selling a home."
Buyers, also let your REALTOR® introduce you to lenders experienced in a variety of mortgage options and incentives. Did you know that several homebuyer programs exist that can lower interest rates or assist with your downpayment? A common myth is that savings programs only exist for lower income. That is not true. There is a wide range of valuable home buyer incentives available for specific communities, for Prince George's County, for the state, and nationwide."
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
