Temps Are Not All That Have Cooled In Prince George’s
November Housing Sales Record Shows A Much Slower Sales Month
As real estate sales slow and new listings come on the market, Veera Phillips, Prince George’s County Association of Realtors® (PGCAR) president and a professional Realtor® at Keller Williams Preferred Properties, reports that the local area market sales activity reflects both a seasonal and general marketplace slowdown, (according to statistics provided by MarketStats by ShowingTime and Bright MLS.)
This November’s recorded 706 sales show a much slower sales month by historical Standards, especially when compared to prior periods from 2015 to 2017. Sales were down 17.5% from the previous month and a 14% decline from 2017. The PGCAR market peak was in 2015 with over 1,000 sales in that year alone. In all, over $210 million in homes were sold by PGCAR members. Median sales prices increased over 4% from the previous month at over $297,000. Interestingly, sellers signed contracts at nearly 90% of initial list price, which illustrates that homes priced competitively sell briskly in the county.
Seventy percent of the homes sold in November relied on conventional financing 283 (40%) and 207 closings (30%) used FHAA financing, this shows the importance of government financing in this market. Further, both new pending sales and all pending sales have shown a decline in contract activity which tends to increase available inventory. Combine that with a growth in new listings coming on the market (which reached a five year high in November, topping at 1090 units) and the availability of listings is very strong. As a result, the average days on market calculation is over 60+ days.
The chart above details November activity compared to the 5-year Average, an important longer-term measure of market trends. Note that Closed Sales are in line with historical levels and that Pending Sale activity has slowed, but is in line with the five-year average. Also note that there’s a healthy supply of homes for sale with a 3+ month supply (2,184 units) available for sale, 10% above the 5-year average. This statistic means that if no new listings come on the market and with continued forecasted demand, the supply will go to zero.
Phillips continued: “Overall, homes are more valuable in Prince George’s County with strong increases in both median and average price per square foot. Purchasing a home in Prince George’s has never been a more solid investment. Combined with the ample supply of starter and move-up homes for buyers in every price point, we believe that our county continues to offer one of the best buying opportunities in the DC metro region.”