Based on results through the first three quarters of 2017, prices in Texas land markets have moved up slightly from 2016 levels. The 2017 percentage increase at 2.1 percent amounted to less than half of the 2016 results. The third quarter increase retreated from 2.13 percent increase in the second quarter. These results top the meager 1 percent gain in 2015 but trail well behind the 2012-2014 robust price growth. The muted expansion confirmed much slower Texas rural land prices appreciation compared to 2013-2015 levels. The 5,339 sales (year-to-year annual totals) marked a significant expansion of activity compared to past third quarter results. The price of $2,584 per acre exceeded $2,530 per acre in 2016, but fell short of the second quarter 2017 price of $2,586 per acre. Overall, Texas land markets continued to grow but prices appear to have changed little since the first quarter.
Regionally, northeast Texas markets continued to post higher prices. Hill Country markets retreated. Past history suggests a slowdown in activity in the coastal bend following devastation following hurricane Harvey. Although economic activity was robust in the third quarter of 2017, markets seem to reflect a cautious attitude among market participants.
