Texas LAND•Summer 2017

MARKET
TEXAS LAND
MARKETS AT THE
BEGINNING OF 2017
Texas land prices reached a new high in
the first quarter of 2017. However, deflated
prices have essentially remained rather flat
since 2015. These first quarter results indicate
that current market dynamics reflect a more
measured environment compared to the
accelerated growth in 2013–2014. Following
the election, observers noticed an uptick in
phone calls but not an appreciable increase in
transactions.
In the first quarter, prices posted a 1.4
percent increase over fourth quarter 2016
levels. At $2,536 per acre the annual increase
over the 2016 first quarter settled at 2.6
percent. Those growth figures document the
significant drop off in price growth emerging
in the 2015 market. Property size at 1,152.6
acres moved up approximately 12 acres from
2016 first quarter markets. The 5,343 sales
moved transaction volume up 354 sales
compared with the 2016 first quarter. The real
or deflated price settled at $438 per acre in
1966 dollars. These factors document another
record setting year throughout the state.
The uncertain environment reflected in
the bruising election season along with low
commodity prices appears to have impacted
markets. At the close of the first quarter, the
euphoric optimism following the election has
begun to wane. Despite OPEC cutbacks and
an uptick in oil prices, petroleum storage totals
continue to rise threatening to derail price
increases. In addition, supplies of agricultural
commodities continue to outstrip demand,
signaling weak operating conditions for farms
and ranches. °
WRITTEN BY CHARLES E. GILLILAND, PH.D.
RESEARCH ECONOMIST | REAL ESTATE CENTER | TEXAS A&M UNIVERSITY
Texas Rural Land Prices—2000-2017
Changes in Texas Rural Land Prices—2000-2017
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