Prince George's County, Maryland
July 2025 Market Watch
Prince George's County Home Market:
Home Values Hold Steady as Sales Ease with Seasonal Slowdown
and Mortgage Rates Continue Downward Trend
Landover, MD, August 2025 - After nine months of steady growth, Prince George's County home sales cooled in July, reflecting both the usual summer slowdown and buyers waiting for further mortgage rate relief. The Prince George's County Association of REALTORS® (PGCAR) reports a 5.1% month-over-month drop in sales, with total sales volume down 7.3% to $315 million.
Despite ongoing national economic uncertainty, rising inventory and strong demand continue to sustain the local market and home values. Furthermore, mortgage rates averaged 6.67% in July, just 0.1% above July 2024. Compared with June 2025, the Median Sold Price slipped 1.2% to $447,887, and the Average Sold Price declined 2.9% to $457,378. However, the Average Price per Square Foot held steady at $252, showing that Prince George's County home values remain consistent when adjusting for home size.
- Prince George's: Outperforming the Region
Prince George's County continues to outpace national and regional home market trends. Home sales have risen in eight of the last ten months, and values are holding firm with 2024 levels. Over any two-year or longer period, homeowners have seen substantial equity growth.
The county's mix of affordability, lifestyle diversity, and strong amenities across education, recreation, culture, and employment make it a standout choice in the DC - Maryland - Northern Virginia region. In addition, Prince George's has a growing population with a total homeownership rate hovering around 64.5%. There are still largely untapped markets in people desiring to be first time homeowners. Growing demand among young professionals, smaller households, and 50+ homeowners are particularly making two- to three-bedroom single family and condominium homes highly sought after markets. - Market Drivers: Seasonal Trends & the Elusive "Perfect" Mortgage Rate
- Closed Sales: 691 in July, down 5.1% from June and 12.2% year-over-year.
- Total Sales Volume: $314.9 million.
- Contract Activity: 1,393 total (691 settled + 702 new), equal to 92.3% of June's activity.
- Contract Ratio: 0.58 (vs. 0.70 in June and 1.08 in July 2024).
Beyond typical July and August seasonal patterns, many buyers and sellers are waiting for mortgage rates to dip further later this year. Comparing two to three mortgage options now has higher potential of saving on your monthly mortgage budget. - Affordable Market Momentum: Stable Values, Growing Availability & Sales
The strongest activity in July came from homes priced between $250,000 and $400,000, where increased listings fueled more sales than even the robust spring market. This growth in the affordable range, coupled with mortgage rates trending toward 6.5%, is boosting optimism about first-time buyer opportunities.
Putting the current summer slowdown in perspective, sales have increased in eight of the past ten months. This sustained momentum is supported by stabilizing mortgage rates and an increase in listings. Current homeowners entering the market as sellers, along with new construction, are helping to meet current and pent-up demand for homeownership. - Home Prices: Equity Growth & Market Confidence
Home values remained steady in July, unchanged from June 2025 and July 2024 when comparing Sold Price per Home Square Footage. July's Median Sold Price was $447,887 – a 0.1% decrease from July 2024 and 1.2% decrease from June. Average Sold Price was $457,378 – a 1.5% decrease from July 2024 and 2.9% decrease from June. This slight decrease in Medium and Average values across total July home sales, initially appearing to contradict the steady home value measured against equal square footage, arises because of the increase in home sales under $400,000 and a smaller decrease in home sales over $400,000..
Steady home values across price segments underscore the long-term investment confidence in homeownership. While the lack of homes under $350,000 remains a barrier for many first-time buyers, an increase in home building permits and attention to affordable home sizes and styles is beginning to make a difference in expanding the overall home market. - Inventory Expands, while Affordable Supply Slowly Improves
Inventory is gradually increasing, moving toward long-term averages. In July, 858 New Listings entered the market. Active Listings rose from a June average of 1,682 to 1,803. For context, a 10-year or 20-year historical view shows Active Listings typically ranging between 1,500 and 2,200 homes. Months of Supply is 2.5, still below the 4 - 6 month range generally considered a balanced market. - Full of Buyer Opportunity; A Competitive Yet Profitable Market for Sellers
Homes sold at an average 98.8% of their Original Listing Price. Median Days on Market (DOM) was 19 days, meaning that half of all contracts were signed within 19 days of listing. Average DOM in Prince George's County was 29 days (up from 27), significantly below the national average of 43 days. Homes are selling quickly and near asking price, showing continued demand despite slight market cooling as we slowly emerge from an extended time of ultra-quick sales, accelerated price appreciations, and historically low inventory.
Market Performance Snapshot
| July 2025 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $314,966,974 | - 13% | - 7.3% |
| Closed Sales | 691 | - 12.2% | - 5.1% |
| Median Sold Price | $447,887 | - 0.1% | - 1.2% |
| Average Sold Price | $457,378 | - 1.5% | - 2.9% |
| Median Days on Market | 19 days | + 90% | + 11.8% |
| Average Days on Market | 29 days | + 38.1% | + 7.4% |
| New Pending Sales | 702 | - 17.6% | - 10.1% |
Expert Commentary: Confidence in the Market
Arnita Greene, PGCAR President and REALTOR® with Capital Structures Real Estate, commented: "Prince George's County continues to offer exceptional opportunities. While the number of sellers entering the market eased 5.7% during July, overall availability of "for sale" homes has slowly improved through 2025. With mortgage rates stabilizing and values holding, buyers now have more options, while sellers continue to enjoy strong equity gains and an average 98.8% of Original Listing Price in contract value."
Greene emphasized the strength of homeownership as a wealth-building strategy, citing substantial appreciation gains measured across any time period of homeownership of greater than two years. Greene also highlighted the role of financing and incentives in motivating buyers. With 30-year rates under 6.7% and 15-year rates under 5.9%, both mortgage and refinancing activity are increasing – evidence of growing buyer confidence.
Buyer Incentives and Affordability Tools
REALTORS® can connect buyers to powerful programs that reduce costs:
- Pathway to Purchase: Up to $25,000 toward down payment/closing costs.
- Maryland SmartBuy 3.0: Eliminates up to $20,000 in student debt.
- Additional programs include VA benefits, College Park Live + Work, and a range of Maryland Mortgage Programs.
In addition, home inventory is more available than in recent years across home resales and new home builds. It's especially exciting to see substantial increases in the more affordable condominium and under $400,000 single-family home markets. Let a REALTOR® find these opportunities within this highly dynamic market on your behalf.
The Takeaway: Why Prince George's Stands Out
"Homeownership is one of the smartest financial and lifestyle decisions you can make," said Greene. "Prince George's County continues to shine – offering affordability, quality of life, and unmatched access to both urban and rural living. Competition is still high for well-positioned properties across the wide range from starter to luxury homes, "walkable" transit-friendly to rural communities, and everything in between. Whether you're buying, selling, or investing, now is the time to act. From fast sales and strong returns for sellers to expanding inventory and financial tools for buyers, Prince George's County remains one of the top-performing markets in the greater Maryland - Washington, DC - Northern Virginia region and across the nation."
Greene concludes: "Connect with a REALTOR® to be your expert in today's market. Let a REALTOR®'s expertise guide you towards, advise, manage and close on a successful purchase or sale!"
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
