February home prices rise in Prince George's County amid fluctuating sales activity

In a recent government meeting, Prince George's County officials reported a mixed but resilient real estate market for February 2025, highlighting a notable increase in home values and buyer demand. The average sales price for homes rose to $455,993, marking a 4.4% increase year-over-year, while the median sold price reached $450,000, reflecting a 5.9% rise compared to 2024.

Despite a 14.5% drop in closed sales from February 2024, the county saw a 1% month-over-month growth in new contract activity, with 629 new pending sales. This indicates a strong market demand, as the total contract activity of 1,142—comprising both closed and pending sales—suggests a balanced market where buyers and sellers are on relatively equal footing.

Inventory trends also showed promise, with a 32% year-over-year increase in active listings, totaling 1,164. This rebound follows a significant decline in new listings late last year, indicating a potential shift towards a more stable market. The February contract ratio stood at 0.94 pending contracts per active listing, allowing buyers slightly more time to make decisions.

However, concerns were raised about the rising number of homeowners potentially falling behind on mortgage payments, with discussions referencing alarming statistics about 90-day late payments being higher than in 1989. This situation could lead to more homes entering the market as individuals may need to sell.

Officials acknowledged the changing dynamics of the real estate market, contrasting the current environment with the robust conditions of 2022, when interest rates were significantly lower. As the county adapts to these shifts, the future of home sales remains uncertain, with questions about whether the current sales figures represent a new normal or a temporary adjustment.

The meeting underscored the importance of monitoring these trends closely, as they have significant implications for the county's economy and housing landscape moving forward.