Prince George's County, Maryland
February 2025 Market Watch
Prince George's County Home Market:
Modest Home Sales and Price Growth
Signal Strength After Strong Start to 2025
Landover, MD, March 2025 - The Prince George's County Association of REALTORS® (PGCAR) reports steady growth in home sales and values for February, reinforcing the market's resilience despite broader national economic uncertainties. While many regions experience a typical winter slowdown, Prince George's County continues to exhibit strong buyer demand and market stability, building on a robust close to 2024 and a promising start to 2025. February's Total Home Sales Volume (Closed Sales times Average Sold Price) increased 2.1% month-over-month to $233.5 million, driven by a 1.2% rise in the Average Sold Price and 0.9% gain in Closed Sales. Notably, sales have grown in four of the last five months - a rare trend for the fall and winter seasons. Despite February traditionally being a slow sales month, half of all listed homes went under contract within 18 days, matching 2024's Median Days on Market and reflecting a 28% decrease from January. This underscores the county's strong and consistent buyer demand.
- Rising Home Values: February Average Sold Price increased to $455,993 - a 4.4% year-over-year gain and 0.9% increase over January. Median Sold Price reached $450,000, reflecting a 5.9% increase over 2024 and a 1.1% increase over January. Both price metrics set new record highs for February, indicating continued appreciation and market strength.
- Sales Activity and Buyer Demand: February saw 1% month-over-month growth in new contract activity with 629 New Pending Sales. Closed sales totaled 513, a 1.2% gain over January and 14.5% drop from 2024. However, this follows four of five months of sales growth. Despite the fluctuation, overall contract activity (513 Closed Sales plus 629 New Pending Sales) indicates strong market demand. In this supply-constrained environment and time of national economic uncertainty, our County's total contract activity (1,142) nearly matched the availability of "for sale" homes, which averaged 1,164 in February.
- Inventory Trends: While inventory remains constrained, February saw a welcome 32.4% month-over-month increase to 1,164 Active Listings, partially reversing previous declines. After plunging 44.4% between October and December 2024, New Listings are starting to rebound. There is still a net decline of 198 listings from October to February, and New Listings remain 11.1% lower than February 2024. Months of Supply increased slightly from 1.48 to 1.58, meaning that if no new listings were added, the current inventory would be sold in 1.58 months.
- A Balanced and Resilient Market: February market data reveals continued strength, high homeownership demand, and a solid foundation for 2025. If inventory expands, sales are expected to follow suit. The February Contract Ratio was 0.94 (Pending Contracts per Active Listing), indicating a balanced market where buyers and sellers are on relatively equal footing. Buyers have slightly more time to make decisions compared to peak market periods while still in the winter months, yet sellers continue to benefit from strong pricing power.
While inventory grew modestly, tight supply keeps the market competitive, with homes selling at an average of 98.9% of their Original Listing Price. Homes continued to move quickly, with a Median Days on Market (DOM) of 25 days - well below the national median of 42 days. The Average DOM in Prince George's County was 38 days, significantly faster than the national average of 66 days.
Market Performance Snapshot
| February 2025 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $233,541,707 | - 10.5% | + 2.1% |
| Closed Sales | 513 | - 14.5% | + 1.2% |
| Median Sold Price | $450,000 | + 5.9% | + 1.1% |
| Average Sold Price | $455,993 | + 4.4% | + 0.9% |
| Median Days on Market | 18 days | + 0% | - 28% |
| Average Days on Market | 35 days | + 2.9% | - 7.9% |
| New Pending Sales | 629 | - 22.5% | + 1% |
Expert Insights: Strength and Opportunity in Prince George's County
Arnita Greene, PGCAR President and REALTOR® with Capital Structures Real Estate, highlights the county's sustained market strength: "Prince George's County remains a dynamic and growing market! We continue to see rising home values, fast sales, and strong contract activity. With mortgage rates declining and expected to decrease just under another half percentage point in 2025, this year presents excellent opportunities for both buyers and sellers."
Greene further emphasized the county's long-term growth trajectory: "Prince George's County's Total Market Volume has grown in seven of the last eight months, with gains ranging from 5% to 29.1%. Total 2024 Home Sales increased 4.5% over 2023, with February 2025 continuing the positive momentum. Median Home Values climbed 5.9% year-over-year, while Average Home Values rose 4.4%.
Despite speculation about DC region homeowners rushing to sell, market data suggests otherwise. On positive news for the home market, more sellers have entered the market in recent months; however, total listings remain 6.4% below 2024's year-to-date numbers and 11.1% below February 2024 levels. Additionally, 98.1% of February's Active Listings were either sold or placed under new contracts within the same month, reinforcing the county's tight inventory and strong demand. Prince George's County has over three years of unmet homebuyer demand. Our County also continues to boast a unique combination of affordability, quality of life, home seller, buyer and investment opportunities above and beyond other locations in the Maryland-Washington DC-Northern Virginia region."
Favorable Market Conditions Ahead
"Mortgage rates have already declined from 2024 levels and are projected to trend lower throughout 2025. Combined with low unemployment and a resilient local economy, these factors are expected to keep homes in high demand," Greene added. In addition, when stock markets become unpredictable, home ownership and investments become even more attractive investments. As National Association of REALTORS® Chief Economist Lawrence Yun noted, "Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners. That means a gain of nearly $1.3 trillion in home value appreciation at a time when the stock market is undergoing a correction."
Strategic Timing for Buyers and Sellers
Greene concludes, "Now is an exceptional time to sell or buy in Prince George's County! Homes are selling at 98.9% of their Original Listing Price and at a rapid pace. Buyers and sellers alike should prepare for the upcoming Spring market surge by connecting with a REALTOR® early. A REALTOR® can help sellers maximize returns by strategically positioning homes in a competitive market. Buyers should work with a REALTOR® to navigate the market efficiently and secure the right home at the best value. Ask your REALTOR® to also connect you with financing experts, to make the most of favorable mortgage options and interest rates. Let a REALTOR®'s expertise guide you with much less stress and more confidence from setting your budget and goals to a successful home contract!"
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
