A Rise In Prince George’s Home Sales

Homeownership Demand Drives 24.2% Sales Increase While Still Capped by Low Supply of Home Listings

Here’s needle pointing in the right direction: county home sales.

The Prince George's County Association of REALTORS (PGCAR) reports an astounding 24.2% surge during May to 815 Closed Sales. New Pending Contracts also increased 3.5% from April to 898 New Pending Contracts in May.

Home values are strong, setting new all-time record highs in Median Sold Price and Average Sold Price for May. Median Sold Price was $424,000, increasing 1% over April and 2.2% over May 2022. Average Sold Price was $433,987, decreasing 0.3% from April and increasing 0.3% over May 2022.

Contract activity for Prince George's County homes (815 Closed Sales plus 898 New Pending Sales) has greatly outpaced Active Listings (averaging only 822 in May) for every month of 2023. Due to this mismatch between high demand and low supply, the Months of Supply of "for sale" homes remains critically low at 1.1, meaning that if no new listings are added, current listings would sell out in 1.1 months.

The increased amount of New Listings eased the Contract Ratio (Pending Contracts per Active Listing) to 1.52, a 5% decrease from April. Under current circumstances of limited inventory, the number of "for sale" homes is the predominant driver of sales activity changes.

Rachel Jefferies, PGCAR President and Associate Broker of Keller Williams Preferred Properties, provides insights on the economic and lifestyle benefits of homeownership. She shared details of the market: “A 24.2% jump in Closed Sales during May proved the strength of the Prince George's County home market once again! The high demand for homes continues to strain against a limited supply of ‘for sale’ homes. These increased sales were prompted by 853 New Listings coming on market during May.”

Due to the high demand and low inventory, Prince George's County Sellers are seeing faster sales and higher Sold Prices. In May, the Prince George's Median Sold Home Price rose to $424,000, a 2.2% increase over 2022. Average Sold Price increased 0.3% over 2022 to $433,987. Prince George's County still enjoys relative affordability within the greater Maryland-DC-Virginia region and is a highly desirable location for homeownership, allowing our County to outperform regional and national market trends.

There is unmet homeownership demand at every price point, the May Median Days on Market fell to 10 days, and the Average Sold Price to Original Listing Price was 100.9%. While this makes it a great time to sell, it's also a great time to buy. With 30-year interest rates stabilizing, now might be the ideal time to lock in a mortgage rate and payment.