Texas LAND Spring 2013

MARKET REPORT
R e g i o n 1 : P a n h a n d l e & S o u t h P l a i n s
In the North Plains the irrigated land market was active with investors
and area farmers buying irrigated land. Some of the irrigated land
developed a few years ago was sold at the end of the year for tax
purposes. The South plains area was a sellers’ market for irrigated
and dry cropland. Many of these farm sales were landlord to tenant.
Overall, CRP sales slow as property owners still are able to reenroll in
the program. Large ranch sales were slow and some of these were for
tax purposes. In the region activity in recreational land purchases is
slow, however the prices were stable. Dryland farm purchases were
light with some being purchased to develop irrigation where water
appears to be available.
B.L. Jones | 806-745-4575
The drought continues.
bjones@agtexas.com
Ag Texas Farm Credit Services
6901 Quaker Ave. | Lubbock, Texas 79413
R e g i o n 2 : F a r W e s t T e x a s
The farm and ranch real estate market in this large geographic region
has generally been stable to slightly increasing during the third quarter
of 2012. This trend is consistent with the activity in the first three
quarters of 2012. The economy of the Trans Pecos area of the region
has been greatly simulated by oil and natural gas exploration and
production activities with increasing pressures placed on farm land
due to the availability of groundwater resources for re-direction to oil
and natural gas exploration activities. Farm land and small tracts of
native rangeland (320 to 640 acres) possessing developable ground
water resources have experienced the most activity and the largest
increases in sales prices. Few larger land sized ranch properties have
been available on the market and prices reflect relative stability with
slightly increasing sales prices.
The ranch properties in the Davis Mountains and Highland Plateau
areas continue to be in demand as a result of their topographic features,
wildlife habitat and productivity. Typically, few properties become
available on the market and, due to demand, tend to be offered at
increasing prices with prospective investment/recreational purchasers
willing and able to consummate transactions. Although the number of
transactions are limited, and upward trend in prices continues.
The Far West Texas area of the region is relatively stable as a reflection
of few properties available on the market. With the exception of
increasing farmland values in the Upper and Lower Rio Grande Valley
due to the urban influence exerted by the growth of the City of El
Paso, are farmland values are relatively stable. Few ranches in the area
are available on the market and listing prices remain consistent with
previous sales prices.
Karl F. Armstead, ARA
432.336.8455
Omega Appraisals
PO Box 358 | Ft. Stockton, Texas 73735
R e g i o n 3 : W e s t T e x a s
The last quarter of 2012 could best be described as controlled panic.
It seemed that some sellers were going to sell by the end of the year
to avoid any additional taxes due to the loss of the Bush tax cuts.
However, a large number of these sellers still had a price in mind,
then they would keep the place. This resulted in some sales but not a
huge glut of sales. The prices also appeared to remain stable with no
real changes. The buyers in the western portion of this region would
not purchase a tract without minerals due to the Cline Shale play in
Glasscock, Sterling, Mitchell, Scurry, and Fisher counties. The sellers
in the area would not convey minerals and therefore, few sales other
than some farmland tracts occurred. The recreational buyers were also
slow to purchase tracts, and this could be due to the lack of confidence
in the general economy as well as the tax laws not being dealt with.
Overall, the prices would be called stable and the market showed no
real increase of decrease in the number of sales
Victor R. Probandt, ARA
325.658.2773
victor.probandt@suddenlinkmail.com
Stribling-Probandt Appraisals
502 South Koenigheim Street
San Angelo, Texas 76903
52 SPRING 2013