Continuing robust financial activity supported by a thriving oil business elevated Texas land costs to $two,878 per acre in the second quarter of 2019. The expanding affluence fueled demand for recreational and investment properties driving a five.96 % annualized raise statewide. Standard size ebbed 18.12 % to 1,263.77 acres, suggesting that purchasers sought smaller sized acreages in higher numbers. The five,559 sales fell 10.67 % brief of the 2018 volume. At $1.12 billion, total dollar volume also tailed off by 9.75 % from 2018. Nonetheless, final tallies may possibly overcome these preliminary totals. Therefore, general statewide Texas land markets stay vigorous with sizable constructive value trends.
Statewide benefits reflect constructive situations in practically just about every area. Primarily based on tax-inspired investment activity, the Panhandle and South Plains watched costs climb strongly. Reflecting the powerful economy, Northeast Texas registered powerful development. Continuing recreational demand for the Central Texas—Hill Nation and Gulf Coast—Brazos Bottom house created strong value development as properly. Countering these powerful benefits, West Texas costs grew extra modestly and South Texas costs remained stagnant. Far West Texas costs, exactly where 2019 markets settled into a typical variety following the stratospheric levels set in the course of the sand mining frenzy, plummeted. General, most markets showed exceptional strength.
As the summer season closes, financial activity continues on a broad base across the state. Despite the fact that pundits warn that the expansion, begun in 2009, should be getting into its finish stages, the close to future shows no indicators of troubling trends. Whilst some lenders have reined in true estate loans, purchasers can nonetheless come across capital. Meanwhile, these participating on the investment front come across it a struggle to ferret out profitable possibilities in conventional automobiles. The scramble for returns may possibly make land investment extra eye-catching as a spot to park capital. Although slower financial development appears to be the consensus forecast, the Fed now seems set to reduce interest prices in the coming quarters. For that reason, barring some unforeseen occasion such as a war with Iran, markets really should continue to thrive.