Texas land prices rising,
Real Estate Center data show From the Texas Gulf Coast to the Piney Woods of East Texas to the Texas Panhandle, land prices are rapidly heading upwards. According to the latest data from the Real Estate Center at Texas A&M University, Texas land prices are up an average of 15%. During the first three quarters of 2004, land prices statewide rose from $1,087 to $1,252 per acre when compared with the same period a year earlier. "The rate of increase in prices paid for Texas land continues to amaze me," said Charles E. Gilliland, research economist. "Recreational buyers are snapping up quality properties wherever they can find them. Investors have a 'buy now' attitude as they expect interest rates will rise and because returns on alternative investments have not been too exciting. These factors have driven price gains well beyond levels seen in the past." Twenty of the 33 Texas land market areas posted significant increases in median price per acre. The biggest price jump was along the Canadian River, where land prices increased 51%. Buyers, both the recreational and the investor varieties, are pouring into this part of the Panhandle and competing for a limited quantity of quality properties. In the scenic Hill Country, urban dwellers seeking a retreat from the hustle and bustle of city life are driving up prices. Others see Hill Country land as a solid investment. As is true in many areas of the state, a limited supply of good land on the market is jacking up prices. In the western portion of the Hill Country, prices are up 27% compared with 2003. Even remote areas of Texas are seeing active land markets and rising prices. For example, in the Trans-Pecos area, which includes all of far West Texas except for El Paso County, prices are up 46%, from $154 to $225 per acre. "Buyers are shifting from high-priced areas, where top-quality, available land is hard to find, to areas once overlooked," Gilliland said.