Population growth and urban sprawl credited with growth
Small land sales volume in Texas saw strong gains in the past year, but prices saw a marginal decline, according to a report by the Texas Association of Realtors.
The trade body said in a statement that small land sales volume in the state rose 14% year on year to almost 7,000 small land tracts sold in 2016. However, it was observed that the price per acre dipped 0.3% in the same period to almost $6,000 per acre.
“As our state’s population continues to grow and the footprints of Texas cities expand, the demand for rural land will only increase. At the same time, after consecutive years of rapid growth in real estate land prices, prices in many regions have leveled off,” Vicki Fullerton, chairperson of the Texas Association of Realtors said in the same statement.
TAR also explained that the definition of a “small” land sale “varies from region to region” but is generally defined as land tracts the size of 200 acres or less. Far West Texas is an exception where cuts as large as 500 to 8,000 acres is considered “small.”
Charles Gillard, economist with the Real Estate Center at Texas A&M University, observed in the same statement, “While the Texas land market remains strong, multiple factors are impacting land sales activity throughout the state. Rising prices of irrigated farmland and a sluggish agricultural sector are driving up land costs in the Panhandle, and residual effects of the oil and gas downturn have slowed small land sales activity in West and South Texas. Statewide, shortages in prime land are stifling land price growth as developers consider less desirable land tracts.”
Further, “The wise utilization of Texas land is the bedrock of our state’s economy and quality of life. As Texas continues to experience rapid population growth, it’s important that leaders across our state and within our communities take care to ensure that ongoing land segmentation and development preserves the unique culture of our state’s regions and does not harm essential industries.”
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The trade body said in a statement that small land sales volume in the state rose 14% year on year to almost 7,000 small land tracts sold in 2016. However, it was observed that the price per acre dipped 0.3% in the same period to almost $6,000 per acre.
“As our state’s population continues to grow and the footprints of Texas cities expand, the demand for rural land will only increase. At the same time, after consecutive years of rapid growth in real estate land prices, prices in many regions have leveled off,” Vicki Fullerton, chairperson of the Texas Association of Realtors said in the same statement.
TAR also explained that the definition of a “small” land sale “varies from region to region” but is generally defined as land tracts the size of 200 acres or less. Far West Texas is an exception where cuts as large as 500 to 8,000 acres is considered “small.”
Charles Gillard, economist with the Real Estate Center at Texas A&M University, observed in the same statement, “While the Texas land market remains strong, multiple factors are impacting land sales activity throughout the state. Rising prices of irrigated farmland and a sluggish agricultural sector are driving up land costs in the Panhandle, and residual effects of the oil and gas downturn have slowed small land sales activity in West and South Texas. Statewide, shortages in prime land are stifling land price growth as developers consider less desirable land tracts.”
Further, “The wise utilization of Texas land is the bedrock of our state’s economy and quality of life. As Texas continues to experience rapid population growth, it’s important that leaders across our state and within our communities take care to ensure that ongoing land segmentation and development preserves the unique culture of our state’s regions and does not harm essential industries.”
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Why new homebuyers add an extra $10k to the economy
These cities saw house prices fall in spite of national trend
