August 5, 2020
Second-quarter numbers from the Real Estate Center at Texas A&M University show a Texas land market hit hard by plummeting oil prices and the pandemic. Research economist Charles Gilliland said pricing was up incrementally, while sales volume and average acreage sold saw quarterly declines.
“The average $2,929-per-acre sales price inched up 1.7%, well short of the 6.5% increase in the first quarter and falling short of that quarter’s $2,986-per-acre price,” Gilliland said. “Closed land sales dropped 8.7%, more than double the decline posted in the first quarter.”
Typical transaction size fell 9.1% to 1,217 acres. Gilliland said this points to an increase in the sales of smaller properties. The drop in activity resulted in a 23.5% decline in acreage, in turn leading dollar volume to fall 22.2%.
“Overall, Texas land market results are encouraging considering the negative forces impacting the state and world economies,” said Gilliland. “Regional results varied.”
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