After a year of unprecedented land sales in Texas, the boom is showing signs of slowing.
In the fourth quarter of 2021, Texas recorded 1,283 rural land sales, significantly lower than the 2,236 sales in the fourth quarter of 2020.
“Feverish demand for land in 2021, coupled with a dearth of listings, pushed prices up 29% to $3,954 per acre statewide,” said Dr. Charles Gilliland, research economist at the Texas Real Estate Research Center at Texas A&M University. “Total dollar volume reached a record $3.4 billion, up 97.6% from 2020.”
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In 2021, a record 846,347 acres changed hands, an increase of 53%. All regions of Texas posted double-digit price increases and substantial increases in total acres transferred.
“This continues to be the busiest time in Texas land market history,” said Gilliland, who has monitored the state’s land market for 40 years. “Typical lot size sold in 2021 increased 14.6% to 1,305 acres.”
He said the facts suggest Texas land markets could return to a more normal level of activity.
“On the other hand, despite the lower number of sales in the fourth quarter, brokers are reporting that they are still very busy working with many potential buyers,” he said.