Prince George's County, Maryland
September 2023 Market Watch
Prince George's County Home Sales:
Homeownership Demand Stable,
While Low Supply Continues
Landover, MD, October 2023 - According to the latest reports from the Prince George's County Association of REALTORS® (PGCAR), there has been a consistent trend in both home values and demand within Prince George's County. New home listings decreased by 7.2% in comparison to the previous month, while closed sales experienced a modest 4.9% reduction. Furthermore, there was a noteworthy 18.8% decrease in new pending sales from August to September.
In terms of home prices, the median price for Prince George's County homes in September 2022 was $400,000. However, it has since seen a healthy 5% increase, resulting in a new median price of $420,000. Nevertheless, it's important to note that this represents a slight 1.2% decline from the figures recorded in August 2023.
The housing market in Prince George's County remains dynamic, with September recording 693 closed sales, a slight 4.9% dip from August's 729 closed sales. Notably, the total contract activity, which includes the 693 closed sales and 708 new pending sales in September, has consistently exceeded the active listings, which averaged only 1,161 in September, throughout 2023. New listings decreased by 7.2%, dropping from 866 in August to 804 new listings in September. This shift has resulted in a rise in the months of supply, now standing at 1.6 in September compared to 1.4 in August. This metric implies that, should no new listings enter the market, the existing listings would sell out in 1.6 months. This continued demand for homes and sustained property values, even with 30-year mortgage rates remaining above 7%, underscores that the availability of homes for sale remains a critical factor driving the Prince George's County housing market.
In the latest data, we observed a significant decrease in new contract activity, with 708 new pending sales - marking an 18.8% drop month over month. All pendings, which encompass new contracts and those carried over from August, also declined by 10% to reach 1,083. In contrast, the supply of active units increased by 11.8% to reach 1,161. These shifts resulted in a Contract Ratio of 0.93 pendings per active listing, down from 1.16 in August but higher than the 0.89 recorded in September 2022. It's worth noting that this Contract Ratio is 31% lower than the 5-year September average of 1.35. For context, a higher Contract Ratio indicates a relative increase in contract activity compared to supply, which typically favors sellers. Conversely, a lower Contract Ratio suggests a relative decrease in contract activity compared to supply, signaling a more buyer-friendly market.
| September 2023 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $300,566,201 | - 7.4% | - 4.4% |
| Closed Sales | 693 | - 11.6% | - 4.9% |
| Median Sold Price | $420,000 | + 5% | - 1.2% |
| Average Sold Price | $437,286 | + 5.5% | + 0.4% |
| Median Days on Market | 11 days | - 21.4% | + 22.2% |
| Average Days on Market | 22 days | + 4.8% | + 22.2% |
| New Pending Sales | 708 | - 14.9% | - 18.8% |
Gene Sementilli, PGCAR President affiliated with CENTURY 21 New Millennium, shared the excitement and challenges of the market: "Procrastination is not your ally. We continue to see exceptionally low "for sale" inventory that continues to drive market demand. Interest rates have inched up slightly and perhaps stabilized some. Our artificially low rates from just 18 months ago are not in the near future crystal ball. Rates from 5% to 7% are the market's new sweet spot.
Sellers should rely on their REALTOR® to showcase their home listing in its best light. For buyers, your REALTOR® can connect you with lenders well-versed in an array of mortgage options and incentives. New financing avenues and homebuyer programs are available to reduce interest rates or down payment requirements. These programs extend their benefits to a broader spectrum of potential homebuyers than commonly realized, encompassing a diverse range of neighborhoods and circumstances. The savings they offer could translate to hundreds less on your monthly expenses or thousands upfront. In this realm, and many others, the path to homeownership is paved with opportunities waiting to help you realize your dream."
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 almost 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
