Prince George's County, Maryland
August 2025 Market Watch
Prince George's County Home Market:
Pending Sales Improve 7%
as Mortgage Rates Ease and Buyer Options Expand
Landover, MD, September 2025 - Prince George's County buyers are responding favorably to slowly expanding inventory and lower mortgage rates. After nine months of steady growth, Prince George's County home sales cooled through July and August, reflecting both the usual summer slowdown and buyer caution while awaiting further mortgage rate relief. The Prince George's County Association of REALTORS® (PGCAR) reported a 13.2% month-over-month drop in August sales, with total sales volume down 12.5% to $275.7 million.
Yet signs of the underlying market resilience continue. Despite ongoing national economic uncertainty, a moderate 2.2% rise in inventory and a 0.22% drop in the average 30-year mortgage rate fueled a 7% month-over-month rise in new pending sales. Expanding opportunities for buyers and strong demand continue to sustain the local market and home values.
- Home Values Hold Firm, Retaining Strong Appreciation and Future Returns
The Average Sold Price rose 0.8% year-over-year and 0.5% month-over-month to $459,814, while the Median Sold Price settled at $440,000, down 1.1% from last August and 1.8% from July. Importantly, the Average Price per Square Foot held steady from July at $252 and grew 0.8% from 2024, confirming stable home values when adjusted for size. - Prince George's County Outperforms the Region
County home sales have increased in eight of the past eleven months, and values continue to track even with or above 2024 levels. Over any two-year or longer timeframe, County homeowners have experienced significant equity gains. Prince George's remains a standout market in the DC - Maryland - Northern Virginia region thanks to its affordability, diverse housing, and strong amenities across education, employment, culture, and recreation. With a homeownership rate of 64.5% and a growing population, first-time buyer demand continues to build - particularly for two- to three-bedroom single-family homes and townhomes. Buyer demand for condominiums also continues to outpace supply. Especially with our strong economy, nationally ranked higher education, opportunities for young professionals, and our proximity to Washington, DC, condominiums are highly sought after across the spectrum of first-time, those moving into the area, and downsizing homebuyers. - Competing Market Drivers: Seasonal Lulls & Economic Uncertainty versus Expanding Home Options & Easing Mortgage Rate
- Closed Sales: 600 in August, down 13.2% from July and 17.7% year-over-year.
- Total Sales Volume: $275.7 million.
- New Pending Sales: 751 (vs. 702 in July and 889 in August 2024).
- Contract Activity: 1,351 total (600 settled + 751 new), equal to 97% of July's activity.
- Contract Ratio: 0.59 (vs. 0.58 in July and 1.15 in August 2024).
- Affordable Market Momentum
Homes priced $250,000 - $400,000 saw the strongest activity growth in August, with new listings driving sales in this price range above even the spring market. Rising inventory, combined with 30-year and 15-year mortgage rates dipping to 6.5% and 5.6% respectively, is opening new opportunities for first-time and moderate-income buyers. - Inventory Expands, Demand Remains Competitive
Active Listings rose from 1,803 in July to 1,847 in August, with 798 New Listings added. Months of Supply improved to 2.6, still below the 4 - 6 month range considered balanced. Homes sold at an average 98.5% of Original List Price. Median Days on Market (DOM) was 24, meaning that half of all contracts were signed within 24 days of listing. Notably, 30.3% of August contracts were signed within 10 days of listing! Average DOM in Prince George's County was 32 days (up from 29), significantly below the national average of 47 days. With the growing listings and variety across home styles and price, buyers have a bit more time to look, compare and make decisions. With price appreciation so strong, home sellers are enjoying profitable returns on their home sale.
Market Performance Snapshot
| August 2025 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $275,705,464 | - 16.5% | - 12.5% |
| Closed Sales | 600 | - 17.7% | - 13.2% |
| Median Sold Price | $440,000 | - 1.1% | - 1.8% |
| Average Sold Price | $459,814 | + 0.8% | + 0.5% |
| Median Days on Market | 24 days | + 84.6% | + 26.3% |
| Average Days on Market | 32 days | + 39.1% | + 10.3% |
| New Pending Sales | 751 | - 15.5% | + 7% |
| Average Price per Sq Foot | $252 | + 0.8% | + 0% |
Expert Commentary: A Favorable Market for Buyers and Sellers
Arnita Greene, 2025 PGCAR President and REALTOR® with Capital Structures Real Estate, noted: "Prince George's County continues to offer exceptional opportunities. While the number of active listings on the market grew a modest 2.2% during August, new contracts increased 7% month over month! Inventory is improving, rates are easing downward, and values remain strong. Sellers continue to capture an average 98.5% of Original List Price, while buyers benefit from expanding choices and competitive mortgage options."
Greene emphasized that homeownership remains one of the most reliable wealth-building strategies, with substantial equity growth for owners of two years or more. She pointed to the impact of financing and incentives, as 30-year mortgage rates trend closer to 6% and 15-year rates approach 5%.
Homeownership: Always a Great Investment
- While economic uncertainties demand extra caution, it also serves as an incentive to buy. Homeownership provides price protection against future home price and rent inflation.
- Homeownership delivers strong long-term appreciation: double-digit equity gains over any 10+ year period.
- Homeowership builds household financial security, particularly valuable in retirement planning.
- Homeowership strengthens community stability and personal lifestyle investment.
- Expert real estate and financial assistance is available for home sellers, buyers and investors. Contact a local REALTOR® to put their expertise to work for you, and minimize your stress and workload.
- Government also recognizes the economic benefits of homeownership. A wide range of federal, state, and local programs for down payment, closing costs, and mortgage assistance - especially for first-time buyers, veterans, property renovations, and specific needs-based groups.
The Takeaway: Why Prince George's Stands Out
"Prince George's County remains one of the top-performing housing markets in the greater Maryland - Washington, DC - Northern Virginia region and nationwide. Its unique combination of affordability, quality of life, and lifestyle diversity makes it a market where both buyers and sellers thrive."
Greene concludes: "Whether you're buying, selling, or investing, now is the time to act. From expanding inventory and financial tools for buyers, to quick sales and strong returns for sellers, Prince George's County continues to shine. Connect with a REALTOR® to be your expert in today's market!"
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:
Arnita Greene, 2025 PGCAR President - 240-997-0198, Arnita@TheGreeneGrp.com
Mike Graziano, Executive Vice President - 301-306-7900, MikeG@pgcar.com
