Prince George’s County Real Estate Market Update

What a year 2007 has been!  The real estate market has changed dramatically, and 2008 is shaping up to be a year of continued adjustment!

Looking Back

Currently, Prince George’s County Sales Statistics show that homes sales aredown a little over 55% from where it was a year ago (934 homes sold 11/06 vs 418 homes sold 11/07).  The average time that a homes is on the market is up almost 75% (59 days 11/06 vs 103 days 11/07).

Home owners in Prince George’s County are seeing less return for their money as well.  in 11/06 home owners saw an average return of 97.2% on their asking price, that figure now is roughly 93.2%.  Bear in mind that this figure does not include any seller concessions that were made, which has risen as well.

Price wise, the average sold price has fallen 8.81%, from $344,956 to $314,577.

Why The Drop?

P.G. County is a hotbed for overpriced and foreclosed homes right now, and mortgage companies such as Countrywide and Freddie Mac are anticipating the volume of foreclosure to increase through 2008.  This is combined with the fact that as mortgage rates have fallen, the criteria for approval has increased.  Lenders are requiring higher credit scores and more money down up front in order to approve loan applications, making it more difficult for people to purchase.

Will it Continue?

P.G. County has the highest level of foreclosure in the state, thanks in part to multiple mortgage scams that operated in the region, as well as people who got trapped purchasing sub-prime loans that they can’t afford to pay back.  Until the volume of foreclosures fall, it is difficult to anticipate an increase in home prices in the area.

Prince George’s County Current Foreclosures (319!)

Related Article:

Understanding the Housing Slump in Maryland