It’s hot outside, but how’s the temperature on the land market? Great question! As I mentioned last month, the narrative at the “32nd Annual Outlook for Texas Land Markets” was that the price per acre of rural land has stabilized, and the expectation was that a small uptick in appreciation could be expected for the foreseeable future. That said, the transaction volume has significantly slowed when compared to 2022. So in last month’s newsletter, we left you with the question: “What does this mean for buyers and sellers of rural land?”
For sellers, the great news is your land is worth significantly more today than it was 2 years ago! The low interest rates and limited inventory that caused prices to skyrocket over an 18-month period have completely “reset” the market from a price-per-acre standpoint. While the prices have now stabilized, if you purchased your land prior to 2020, you are well-positioned to make a significant gain if you’re thinking about selling. That said transaction volume is down, which means that the days of multiple offers over the asking price and a time on the market of 2-3 months is now the anomaly as opposed to the standard. Today, more than ever, sound pricing and a great marketing strategy is a must for sellers. If you want to know more about the process, contact me today and we can walk through the process together.
Be on the lookout for what buyers can expect in this market in next month’s newsletter!