Texas LAND Spring 2013

R e g i o n a l R e a l E s t at e T r e n d s
R e g i o n 4 : N o r t h e a s t T e x a s
Region 4 includes the area just north of the Dallas Fort Worth
metroplex to the Arkansas border and south along the Louisiana
border to about the Lufkin Nacogdoches area. The western boundary
is about I-45.
Because of the urban influence of the Dallas Fort Worth metroplex,
Dallas, Tarrant and the adjoining counties are not considered.
The cropland area along the Red River has seen increases in land
value for the larger tracts (>1,500 acres) of about 20% in the past six
months. The tracts below 1,500 acres are increasing but not to the
level of the larger tracts. Pasture and Recreational Land are stable.
For the institutional investor, the price of timber and forecast for future
timber values appears to be a major concern.
Sales are active for properties in excess of 20,000 acres to include
western Louisiana. Sales for properties between 5,000 and 15,000
acres are slow. Tracts below 5,000 acres are the basis for the stability
estimate. There are several sales below 5,000 acres to support the
stability indication.
There is not enough cropland in the area to derive an indication.
Pasture land in the western area along I-45 shows stability to
increasing values. In the eastern areas, stability is shown.
The support for the increase in value for the cropland tracts appears
to be commodity prices and if commodity prices remain strong so will
land values. If commodity prices decline, it follows land values will
also decline.
In the Pineywoods North and South regions, land values remain stable
for timberlands. The recreational potential of the property is one of the
major imputs to land value.
Scott Seely
936.632.4230
scott@LewisSeely.com
Lewis & Seely Appraisals, Inc.
308 E. Lufkin Ave.
Lufkin, Texas 75901
R e g i o n 5 : G u l f C o a s t - B r a z o s B o t t o m
Region five is roughly described as the southern piney woods, the
coastal prairie area and the Brazos Bottom. The Houston area,
including the Woodlands and Katy area, has dominated the region
for many years and continues to do so. The last quarter of 2012 was
reasonably active and “hurried” for lack of a better word. The concern
surrounding potential tax law changes found many land owners trying
to sell before the end of the year. I saw a number of contracts that
included one price if the buyers could close before the end of the year
and another if the closing occurred after the first. In a few cases I could
argue tracts traded at a slight discount due to the perceived urgency
to sell, but for the most part prices did not suffer. In general the
market was what I would call healthy in the latter part of 2012, and
most of the year for that matter. Buyers and sellers are approaching
deals with reasonable expectations and most buyers are end users.
The “flippers” have largely disappeared. The general consensus is the
market appreciated slightly through the last quarter of 2012. While
I agree the market is improving slightly I believe part of the increase
in the general price level is related to increased demand for more
desirable properties which command a premium over less desirable
tracts. A significant portion of the transactions are cash. Cash buyers
can typically “afford” to be selective and purchase nicer properties and
not surprisingly the more desirable tracts are in greatest demand. This
spans all rural property types in the region including farmland, timber,
and recreation.
Wayne T. Young
Regional Chief Appraiser
936.439.0379
wayne.young@capitalfarmcredit.com
Capitol Farm Credit, ACA
624 FM 1791 | Huntsville, Texas 77340
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