August News

by | Aug 12, 2023

Summer break is wrapping up at last! We hope the summer break has gifted you with more quality time for friends and family to create lasting memories in the great outdoors.

As our summer series of recapping the “32 Annual Outlook for Texas Land Markets” draws to a close, we wanted to build on last month’s newsletter and let you know what buyers are experiencing in today’s “shifted land market”.

As mentioned in July’s newsletter, land prices have stabilized, inventory is building, and transaction volume is down. Historically speaking, this would typically put us in a “buyers’ market”. However, the elevated interest rates as compared to the previous 2 years have caused the financed buyers to really pump the breaks on getting into the market. Those buyers who do choose to purchase in this market are seeing favorable conditions when compared to the bull market we’re coming out of.

As opposed to previous years, buyers have greater inventory to choose from, are rarely finding themselves in multiple offer situations, can be more patient in their search, and have far more negotiating power. Moving forward, the uncertainty around interest rates will keep some financed buyers on the sideline, but there is still plenty of cash in the market and the cash buyers seem to be well-positioned to purchase. Two of the best sayings that have always been true when considering when to buy land are:

1) “The right time to buy land was yesterday”- When looking at historical land prices in Texas, you’ll see that they always appreciate. While there are times when you will see a small downtick in price, they always rebound, and usually quickly. Trying to “time the market” is never a good place to be in. If you want to own a great piece of land, today is the day to get serious.

2) “Date the rate and marry the land”- If you find the perfect piece of land jump on it. Rates will come down eventually. When they do, you can refinance or do a rate conversion with your lender.

Stay cool and we’ll see you next month!