Prince George's County, Maryland
November 2023 Market Watch
Prince George's County Home Values Rise 9.1% Over 2022
Amidst Low Inventory and Unmet Demand;
Economic Strength Expected to Fuel 2024 Market Growth
Landover, MD, December 2023 - 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. Median Sold Price was $419,900, increasing 9.1% over November 2022 and decreasing 1.2% from October. Average Sold Price was $428,450, increasing 7.4% over November 2022 and decreasing 2.8% from October. These home values once again set record highs for November Average and Median Sold Prices! These large annual gains and mild month-over-month decreases are especially notable while entering winter, better known for its expected annual slowdown rather than exciting increases of any kind.
While November Closed Sales decreased, New Pending Sales increased. November saw 599 Closed Sales, a decrease of 0.5% from 2022 and 7.7% from October. New Pending Sales increased 2.9% from 2022 to 715 in November, a 1.2% decrease from October. This was as the average 30-year mortgage interest rate began to moderate as November began, then decreased more substantially to end the month at 7.03%. The average number of Active Listings decreased 4.2% from October to 1,179 in November; however, exceeded the 5-year November Active Listings average of 1,157.
Available "for sale" homes are still selling fast, in 13 Median Days on Market (the time between Listing and Contract signing), equal to October but a 27.8% decrease from last year's 18 days. Total Contract Activity for Prince George's County homes (599 Closed Sales plus 715 New Pending Sales in November) has outnumbered Active Listings (averaging 1,179 in November) for every month of 2023. Only 729 New Listings came on market in November; however, that is a 3.5% increase from October. Months of Supply decreased from 1.72 to 1.65 in November, meaning current listings will sell out in 1.65 months if there are no new listings.
The November Contract Ratio was 0.93 Pending Contracts per Active Listing, up from 0.87 in October and from 0.85 in November 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 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.
| November 2023 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $255,965,235 | + 6.7% | - 10.2% |
| Closed Sales | 599 | - 0.5% | - 7.7% |
| Median Sold Price | $419,900 | + 9.1% | - 1.2% |
| Average Sold Price | $428,450 | + 7.4% | - 2.8% |
| Median Days on Market | 13 days | - 27.8% | 0% |
| Average Days on Market | 26 days | - 3.7% | + 4% |
| New Pending Sales | 715 | + 2.9% | - 1.2% |
Gene Sementilli, PGCAR President and CENTURY 21 New Millennium Associate Broker, provided insights on market opportunities and challenges: "Many say winter is the best time to sell or buy a home. That may be even more true this year. For Sellers, winter is a time of lower inventory, which tends to increase Sold Prices and encourages home buyers to commit more quickly when finding a desirable home. For Buyers, you are competing against fewer active searchers and going into 2024 you also enjoy the luxury of falling mortgage rates. Locking in a rate now guarantees your maximum rate, and most likely will still allow you the option to lower your rate if rates decrease. Moreover, you can beat the expected rush back into the market this spring. Although rates are expected to further decrease, home values are also expected to increase for spring. While you can't typically negotiate a price down in a tight market, you can refinance a loan to a lower mortgage rate.
With another month of increased New Pending Sales (a leading indicator), the reality of accelerated inflation decreases, and the recent announcement that the Federal Reserve expects to lower interest rates in 2024, we are even more optimistic that Prince George's County has reached or is near a sales turning point. Home Sales have been constrained and homeownership dreams delayed by critically low "for sale" inventories and inflation for over 2 years. With mortgage rates now below 7% (as of the December 15 weekly Freddie Mac mortgage report), lower inflation now being realized, and a strong job market, more prospective home sellers who are conservatively holding tight onto their current homes and prospective home buyers awaiting better availability and interest rates, will be enticed to jump into the market.
Prince George's County home values continue to increase, allowing most Sellers a substantial gain. Prince George's County home values set new all-time record highs for every month of 2023, reaching a Median Sold Home Price of $419,900 and Average Sold Price of $428,450 for November, 9.1% and 7.4% increases over 2022 respectively! New Pending Sales increased 2.9% in November, a number which may or may not rise through winter but will almost surely rise in spring, especially if mortgage rates are decreasing towards 6.5% with hopes of even lower rates in the future. It's a great time to become a homebuyer for renters and for homeowners on the move. 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.
Prince George's County is a great place to live! We also enjoy relative affordability within the greater Maryland-DC-Virginia region, another reason for our long-time home market resilience and home value strength. Our State, County and communities also incentivize homeownership through the Maryland Mortgage Program, Prince George's Pathway to Purchase, Greenbelt Home Advantage, and other Home Buyer Assistance Programs. The $15,000 Greenbelt Home Advantage Grant for homebuyers in Greenbelt has an application deadline of December 29, 2023. Other programs such as Maryland SmartBuy 3.0 continue longer. SmartBuy 3.0 provides up to 15% of the home purchase price to pay off up to $20,000 in student debt."
Sementilli added: "Contact a REALTOR® now if considering buying or selling a home. Sellers, let a REALTOR®'s expertise efficiently and effectively advance your home from listing to a successful sale. Sellers, take advantage of a REALTORS®' access to the best market knowledge, and their expertise in appraisals, purchase options, pitfalls to avoid, negotiations, and contracts.
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.
CONTACTS:
Gene Sementilli, 2024 PGCAR President - 301-807-7797, Gene.Sementilli@c21nm.com
Mike Graziano, Executive Vice President - 301-306-7900, MikeG@pgcar.com
