Oct. 12, 2022
COLLEGE STATION, Tex. (Texas Real Estate Research Center) – Rural land sales volume fell 26.5 percent from mid-2021 to mid-2022, according to the just released Texas Land Market Latest Developments by the Texas Real Estate Research Center (TRERC) at Texas A&M University.
“Clearly activity appears to be slowing,” said TRERC Research Economist Dr. Charles Gilliland. “Demand for land, as reported by rural brokers, remains strong but has noticeably cooled from last year’s frenzied contest.”
Gilliland said below-asking-price offers have returned to some markets, something not seen since third quarter 2020. Fewer properties for sale in second quarter 2022, however, increased prices by 24.5 percent to $4,286 per acre statewide.
Total second-quarter dollar sales volume hit $3.6 billion, up 28 percent. That compares with a 76.7 percent first-quarter rise, and a 97.6 percent increase in fourth quarter 2021.
“A total of 850,469 acres changed hands,” said Gilliland, “up only 3.67 percent over 2021, suggesting market activity has fallen to a more normal level at high prices. The typical transaction expanded 9.4 percent to 1,293 acres.”
Prices increased by more than 21 percent statewide, except in Far West Texas, where they fell substantially, says the report. However, total acres transferred declined in several regions, and total sales dropped everywhere but Far West Texas.
“This trend toward rising prices and declining activity suggests demand is dropping,” said Gilliland. “If so, brokers may begin to find ebbing enthusiasm among potential buyers.”
Read the complete report here. https://assets.recenter.tamu.edu/Documents/Articles/2268.pdf
Funded primarily by Texas real estate license fees, TRERC was created by the state legislature to meet the needs of many audiences, including the real estate industry, instructors, researchers, and the public.
Thousands of pages of data are available at the Center’s website. News is also available in our twice-weekly electronic newsletter RECON, our Real Estate Red Zone podcast, our daily NewsTalk Texas feed, on Facebook, on Twitter, on LinkedIn, and on Instagram.