Land Sakes! Texas Small Land Sales, Prices Surged In 2015
AUSTIN (Texas Association of Realtors) – Texas small land sales were the strongest segment of the state’s real estate market in 2015, with double-digit increases in sales and price per acre, according to the Texas Small Land Sales Report released today by the Texas Association of Realtors.
There were 6,281 small land tracts sold in Texas in 2015, an 18.9 percent increase from 2014. This double-digit growth was consistent across all regions, with the exception of Region Five (Gulf Coast-Brazos Bottom), which fell 7.4 percent to 1,146 sales, and Region Two (Far West Texas), which increased nearly 8.6 percent to 38 sales.
Region Seven (Austin-Waco-Hill Country) recorded the most small land sales, jumping 19.7 percent to 2,062 sales.
The average price per acre for small land sales also increased, rising 10.2 percent to $5,657 per acre statewide. Region One (Panhandle-South Plains) and Region Four (Northeast Texas) were the only regions to show decreases in average price per acre, falling 4.8 percent to $1,749 per acre and 3.5 percent to $7,305 per acre, respectively.
Region Five had the highest average price per acre, with land prices increasing 9.4 percent to $10,002 per acre.
Statewide average tract size continued to drop as high demand for Texas land drove down the average tract size 13.3 percent to 39 acres.
However, average tract sizes increased in Regions One, Four, and Five and remained flat in Region Seven. Real Estate Center Research Economist Dr. Charles Gilliland said these increases are likely due to a shortened supply of prime land, not a decline in demand, as Texans increasingly view land as a wise investment.
“Investing in Texas land can yield higher returns than traditional investment options,” Gilliland said. “More Texans are purchasing land for recreational purposes or a vacation property, knowing that if they sell in a few years, there’s a good chance they will see a strong return.”
