Prince George's County, Maryland
May 2025 Market Watch
Prince George's County Home Market:
Home Values and Sales
Continue Steady and Fast as Inventory Increases
Landover, MD, June 2025 - The Prince George's County Association of REALTORS® (PGCAR) reports a steady and confident transition from Spring to Summer in the county's housing market. Home values and sales activity remain strong, reflecting consistent demand even as national economic uncertainty continues. In May, Closed Sales rose 1.8% over April, and home values remained stable month-over-month, building on significant year-over-year gains.
Prince George's County continues to outpace national and regional trends, thanks to its resilient economy, diverse housing stock, and longstanding appeal to buyers across a range of price points.
- Market Momentum: Sales Volume and Value Stability
May retained or grew the gains made during double-digit April growth. Total Home Sales Volume (Closed Sales times Average Sold Price) reached $320.9 million, marking a 2.8% increase month-over-month. This growth was driven by a 1.8% increase in Closed Sales and a 0.9% rise in Average Sold Price.
Notably, home sales have increased in seven of the past eight months, defying the typical seasonal slowdown seen in fall and winter and underscoring the county's market strength. Stabilizing mortgage rates and an uptick in listings – including new construction – are helping meet current and pent-up homeownership demand. However, affordability remains a key limiting factor for further acceleration in sales. - Home Prices: Continued Appreciation and Equity Confidence
Home values posted significant gains over 2024. May's Median Sold Price was $453,995 – a 5.6% gain over 2024 and even with April. Average Sold Price was $472,491 – a 6.1% gain over 2024 and 0.9% gain over April. This steady appreciation spans price brackets, reinforcing confidence in long-term home equity growth. However, the market continues to see a shortfall in homes priced below $350,000 – an area critical for first-time buyers. - Inventory Expands, while Affordable Supply Remains Tight
Inventory levels are rising but still below long-term averages. In May, 949 New Listings entered the market. Active Listings rose from an April average of 1,444 to 1,585. For context, a 10-year or 20-year historical view shows Active Listings typically ranging between 1,500 and 2,200 homes. Also, a balanced market is typically considered to be between 4 to 6 months of inventory. Current Months of Supply is 2.2, meaning that if no new listings were added, the current inventory would be sold in 2.2 months. - Sales Activity and Buyer Demand Stay Strong
May Closed Sales totaled 682 and New Pending Sales totaled 831, increasing 1.8% and 2% over April, respectively. Total Contract Activity of 1,513 (settled and newly signed) home contracts gained 1.9% month-over-month and nearly equaled Active Listings (averaging 1,585). The Contract Ratio (Pending Sales / Active Listings) was 0.79, signaling a balanced market with a slight tilt toward buyers. This indicates that while buyers have more options, competition and demand remain strong. - Speed and Strength: A Seller-Friendly Market with Buyer Opportunity
Homes sold at an average 99.1% of their Original Listing Price. Median Days on Market (DOM) remained at 14 days for a second month, meaning that half of all contracts were signed within 14 days of listing. Average DOM in Prince George's County remained at 29 days, well below the national average of 51 days.
Market Performance Snapshot
| May 2025 | Year Over Year (YoY) | Month Over Month (MoM) | |
|---|---|---|---|
| Total Sold Dollar Volume | $320,917,721 | - 4.5% | + 2.8% |
| Closed Sales | 682 | - 10.6% | + 1.8% |
| Median Sold Price | $453,995 | + 5.6% | - 0.1% |
| Average Sold Price | $472,491 | + 6.1% | + 0.9% |
| Median Days on Market | 14 days | + 40% | + 0% |
| Average Days on Market | 29 days | + 26.1% | + 0% |
| New Pending Sales | 831 | - 2.1% | + 2% |
Expert Insights: Strong Fundamentals, Expanding Opportunity
Arnita Greene, PGCAR President and REALTOR® with Capital Structures Real Estate, commented: "We continue to see home values appreciate, rapid sales, and sales increase as inventory steadily increases. With mortgage rates and month-over-month price increases stabilizing, Prince George's County continues to offer exceptional opportunities for home buyers and sellers."
Greene highlighted that the year-over-year appreciation of 6.1% from May 2024 is strong – demonstrating that homeownership, regardless of perceived high prices, is still a solid investment. "As more sellers enter the market, we're unlocking pent-up demand and enabling more successful home closings."
Maximize Your Path to Home Affordability
In today's complex financial environment, working with a REALTOR® can help buyers and sellers make the most of available mortgage programs and funding options. In addition to the extensive homeownership finance training many REALTORS® take, they can connect you to trusted mortgage and financial experts.
- Numerous programs exist to offer assistance through the Veterans Administration (VA), Fannie Mae, Freddie Mac, the state of Maryland, Prince George's County, certain cities and regions, and so many other sources.
- Did you know FHA 203(k) and streamlined 203(k) rehab loans offer flexible financing for home upgrades?
- Did you know the $25,000 Prince George's First Time Homebuyer program can include applicants who haven't owned a home in the last 3 years, and the maximum allowed income starts at $91,800?
- Did you know your employment can help you qualify for homebuyer savings? This often applies to public safety and education workers, or simply tied to buying a home close to where you work.
"Even when the timing doesn't seem perfect, it's always worth exploring homeownership. It's one of the most powerful lifestyle and financial investments you can make – and one you can live in," Greene emphasized.
Prince George's County continues to outperform regional and national markets, offering affordability, diverse housing styles, and a high quality of life. From urban to rural settings, and from cultural to employment opportunities, Prince George's County stands out as a leading place to live, work or grow a business across the greater Maryland-Washington DC-Northern Virginia region."
Final Takeaway: The Time to Act Is Now
Greene concludes: "Whether you're buying, selling, or both – Prince George's County is an exceptional place to make your move. Sellers are benefiting from fast sales and high returns, while buyers are finding more choices and value. Connect with a REALTOR® to make the most informed, strategic, and rewarding decisions 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
