Prince George's County, Maryland
October 2023 Market Watch
Prince George's County Closed Home Sales
Decreased in October, but the Month Ended Positively
with New Pending Sales and Inventory Increases
Landover, MD, November 2023 - The Prince George's County Association of REALTORS® (PGCAR) reports that Prince George's County home values remain strong. While October Closed Sales decreased, New Pending Sales increased amidst a modest gain in home inventories and easing inflation. October saw 649 Closed Sales, a decrease of 5.1% from 2022 and 6.4% from September. This was as the average 30-year mortgage interest rate was rising from 7.49% to 7.76%. Despite availability and interest rate headwinds, the Prince George's County home market continues to outperform regional and national trends. The long-standing high value and demand for Prince George's County homes persist. New Pending Sales increased 2.3% over September to 724 in October. The average number of Active Listings also increased 6% over September to 1,231 in October. The County again set record highs for October Average and Median Sold Prices. Average Sold Price was $440,747, increasing 4% over October 2022 and 0.8% over September. Median Sold Price was $425,000, increasing 6.3% over October 2022 and 1.2% over September.
Available "for sale" homes are still selling fast, in 13 Median Days on Market (the time between Listing and Contract signing), an increase from September's 11 days but an 18.8% decrease from last year's 16 days. Total Contract Activity for Prince George's County homes (649 Closed Sales plus 724 New Pending Sales in October) has outnumbered Active Listings (averaging 1,231 in October) for every month of 2023. Only 832 New Listings came on market in October; however, that is a 3.5% increase from September. Months of Supply increased from 1.61 to 1.72 in October, meaning current listings will sell out in 1.72 months if there are no new listings. Steady home demand and rising values amid 30-year mortgage rates approaching 8% further indicate that the availability of "for sale" homes is the critical driver of the Prince George's home market.
The October Contract Ratio was 0.87 Pending Contracts per Active Listing, down from 0.93 in September and up from 0.81 in October 2022. A lower Contract Ratio indicates the market is moving in favor of the Buyer, with homebuyers experiencing a bit more choice and decision-making time in their home search. 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.
All market indicators show the strength of the Prince George's County home market. Prince George's County is a desirable, affordable choice in the greater Washington, DC region. Low unemployment rates (1.7% in Maryland, the lowest nationwide) and easing inflation (notably dropping from September's 3.7% report to October's 3.2% report) indicate improving economic health, expanding the desire for homeownership. The biggest concern is inventory remains so much lower than homeownership demand. Interest rates are also a strong factor, helping to either fuel or constrain Total Sales and opportunities for more individuals and households to realize the generational wealth-building and value of homeownership.
| October 2023 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $285,015,840 | - 1.4% | - 5.2% |
| Closed Sales | 649 | - 5.1% | - 6.4% |
| Median Sold Price | $425,000 | + 6.3% | + 1.2% |
| Average Sold Price | $440,747 | + 4% | + 0.8% |
| Median Days on Market | 13 days | - 18.8% | + 18.2% |
| Average Days on Market | 25 days | - 3.9% | + 13.6% |
| New Pending Sales | 724 | - 4.7% | + 2.3% |
Gene Sementilli, PGCAR President and CENTURY 21 New Millennium Associate Broker, provided insights on market opportunities and challenges: "Now could be the best time to either sell or buy a home. Having both the hindsight of October New Pending Sales (a leading indicator) rising 2.3% on a small gain in home inventory in spite of October mortgage rates rising towards 8%, and the current knowledge that the Federal Reserve is calling at least a temporary hold on interest rate increases, we are 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 for over 2 years. With the hope for decreasing mortgage interest rates and easing inflation now being realized, 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! In October, Prince George's Median Sold Home Price was $425,000, a 6.3% increase over 2022. Average Sold Price was $440,747, a 4% increase. Homebuyers gain a home to call their own, and the ability to trade uncertain, increasing monthly housing costs for a stable monthly mortgage payment which helps build equity and financial security.
Furthermore, we are approaching winter, which is typically a lull before the Springtime home sales rush. There's much benefit to jumping in now, prior to the more stressful, hectic Spring market pace and added pressures to hasten offer consideration times. And as mortgage rates decrease, competition with other Buyers and Sellers will likely increase.
As icing on the cake, Prince George's County is a great place to live! Highlighting just one area, affordability, while affordability is an increasing problem, we enjoy relative affordability within the greater Maryland-DC-Virginia region. 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. Pathway to Purchase offers up to $25,000 in down payment and closing costs towards any home in Prince George's County with a purchase price up to $432,000 for existing-home sales or $467,000 for new construction. The $15,000 Greenbelt Home Advantage Grant for homebuyers in Greenbelt has an application deadline of December 29, 2023."
Sementilli added: "Don't wait to contact a REALTOR® if considering buying or selling a home. Sellers, let a REALTOR® efficiently and effectively manage and market your home listing. 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 for success! Simply having a REALTOR® with real estate as their profession and being able to quickly schedule "best match" home showings can make the difference in the successful sale or purchase of your home.
Contact a REALTOR® today if you are considering selling or buying a home! Let your local REALTOR® work on your behalf as a mediator, manager, and guide to 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.
CONTACTS:
Gene Sementilli, 2024 PGCAR President - 301-807-7797, Gene.Sementilli@c21nm.com
Mike Graziano, Executive Vice President - 301-306-7900, MikeG@pgcar.com
