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 7 :
A u s t i n - W a c o -
H i l l C o u n t r y
The fourth quarter of 2012 in the central Texas land market area
(Region 7) ended with the uncertainties related to the tax law changes
for 2013 motivating a number of sellers to be more aggressive in
the marketing of their properties. The desire to avoid possible capital
gains tax increases and additional taxes related to the health care bill
provided motivation for negotiating a closing prior to the end of 2012.
Prices may have been slightly lower but were, overall, consistent with
recent price trends which demonstrated somewhat lower prices from
the 2007 peak levels and definitely below the peak asking prices.
Without this atypical motivation, some land sales may not have
T h e i n f l u e n c e o f t h e
w e a lt h b e i n g c r e at e d
t h r o u g h o i l a n d g a s
p r o d u c t i o n o u t s i d e t h e
r e g i o n i s b e g i n n i n g
t o b e o b s e r v e d i n t h e
m a r k e t f o r H i l l C o u n t r y
r a n c h e s w i t h t h e s e
b u y e r s p u r c h a s i n g s o m e
o f t h e l a r g e r a n d m o r e
s c e n i c r a n c h e s s o l d
d u r i n g t h e pa s t q u a r t e r .
occurred or may have been delayed into 2013.
The recent buyers of central Texas ranches represent a wide range
of profiles including both established land owners seeking to expand
their regional land holdings and new entrants to the region’s ranch
market. The influence of the wealth being created through oil and
appear to have been the most active buyers in late 2012. Improving
economic conditions in the urban areas of Texas combined with the
demand generated by oil and gas revenues are anticipated to have a
positive influence on demand in early 2013.
gas production outside the region is beginning to be observed in the
market for Hill Country ranches with these buyers purchasing some of
the larger and more scenic ranches sold during the past quarter.
Cultivated land in the eastern and northeastern portions of Region 7
continued to experience strong demand. High grain prices combined
with a near average crop in 2012 provided funds for the well
established farmers to buy additional land. Investor demand continues
to be evident in the region’s cropland market although local producers
Wendell C. Wood
Kokel – Obbender – Wood Appraisals
512.863.6428
wendell@k-o-wappraisal.com
404 W. 9th St
Georgetown, Texas 78626
landsoftexasmagazine.com
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