|Texas Land Market Latest Developments||Texas Land Market Latest Developments||Charles E. Gilliland and Tian Su||2020-11-03T06:00:00Z||research-article||Land Markets|
About This Report
The Texas Land Market Latest Developments report contains an analysis of Texas land markets. The reported sales consist of a sample of verified transactions. The report does not include all land sales transacted in Texas. The statistics reflect a mixture of land uses and conditions and represent the market for large rural land tracts (the minimum land size is region specific due to the varied tract sizes sold in each region). The statistics in the report reflect general trends without regard to land use or type. The analysis reports quarterly, annualized changes using moving averages as they generally minimize noisy, short-term fluctuations and provide a long-term indication of market trends. The median values are also reported as they are most stable representation of market conditions at any point.
Users should regard the statistics presented here as indicators of past market conditions providing a general guide to land market trends. The reported data do not represent prices or values of any particular farm or ranch. Users should not regard the reported statistics as a substitute for an appraisal or market study of current local sales regarding the value of any particular farm or ranch.
For historical data, data on Texas’ Land Market Areas, and data for Louisiana, Mississippi and Alabama, go to recenter.tamu.edu/data/rural-land. The link will also direct you to Texas Rural Land Value Trends, a regional analysis of Texas markets by the Texas Chapter of the American Society of Farm Managers and Rural Appraisers.
Second quarter developments reflected the turbulence of economies and societies reeling from the coronavirus. The unprecedented cessation of economic activity took a toll on Texas, and the southeast as numbers of transactions and total dollar volume contracted. In normal times, those negative developments on a broad front would signal emerging weakened conditions. However, the economic environment has radically changed from the first quarter. Currently, market professionals report a noticeable uptick in interest with increased inquiries. In addition, views of Real Estate Center’s online rural land data spiked 63 percent in the past month.
Nevertheless, the path forward remains clouded with uncertainty. Many had anticipated that the severity of the pandemic would have abated by late summer. Because that has not happened, conditions have forced potential buyers to revise their expectations about the path forward. Fears of permanent layoffs, more bankruptcies, and evictions haunt their thinking. In addition, the unrest shaking cities also poses challenges for the future. These conditions could point to conditions leading to reduced demand and negative repricing of land. However, the renewed interest in rural properties as a haven protecting owners from the turmoil abounding in cities suggests increased demand could inspire higher land prices. Developments in the next two quarters will reveal the ultimate direction of future market realities.
|Digital and Print||2268||https://www.recenter.tamu.edu/articles/research-article/TexasLandMarket-2268|| https://assets.recenter.tamu.edu/Documents/Articles/2268.pdf|