A NOTE FROM YOUR LAND BROKER, CHARLES
Summer is here, and as I write this, the majority of Hill Country, Central, and South Texas have all received some much-needed rain, which was right on time, as triple-digit days have already made their way into the forecast.
As I mentioned last month, we will begin unpacking the main takeaways from the “34th Outlook for Texas Land Markets” conference in San Antonio, and how they translate for buyers and sellers alike.
Of the 5 talking points laid out in last month’s newsletter, I would like to begin with…
- The economy is slowing. There is considerable uncertainty in all markets right now.
- There’s no evidence of a recession.
- We have not “won the war on inflation.”
- There are no clear signs indicating which direction interest rates will take.
- The stock market is volatile.
- The long-term effects of tariffs are unknown.
In my experience, nothing seems to affect the activity of the ranch real estate markets more than uncertainty around the economy. Uncertainty causes buyers to pause and “sit on their” hands until clarity is garnered and confidence is restored. Which is ultimately what it takes to get buyers off high center and willing to spend their money.
While it’s difficult to discern between market sentiment and market fundamentals at times, I believe that if there is any chatter in the public eye about a down economy, that’s typically all it takes for buyers to sit on the sidelines.
Now, the bulleted items above were taken in April, on the heels of the tariffs being rolled out and the market responding in a negative way. Since then, the market has stabilized, and there has been some de-escalation on the tariff front.
Navigating the ever-changing economy is challenging, but we’ve seen tangible evidence from our positions on the brokerage side that the market remains active. In May, our firm closed 9 ranches, put 4 under contract, and listed 6 new ranches. Looking back at the 2 months prior, our numbers were not nearly this strong. Thus, time will tell if we are seeing some confidence restored.
We’ll continue to review takeaways from the conference next month. Whether you’re a ranch buyer or seller, stay tuned as we navigate the market together!
Case Illustrates Difficulty of Proving Easement by Necessity
The Austin Court of Appeals recently issued a decision in #1STR, LLC v. White, a case that illustrates the difficulty landowners face in proving the existence of an easement by necessity.
Click here for the full article!
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