The number of sales of small parcels of land in Texas—generally defined as less than 200 acres—fell after six years of consecutive increases, according to the 2020 Texas Small Land Sales Report released by Texas REALTORS®.
There were 7,813 small land sales in Texas in 2019, a 2.8% decline when compared with 2018. Prices, however, increased 7.32% to $6,232 an acre.
“This comparison of 2018 to 2019 would have been an invaluable trending tool just a few months ago, but given the potential market shifts caused by COVID-19 and its response, it will instead be used more as a benchmark to gauge impact,” said Cindi Bulla, chairman of Texas REALTORS®. “There are many possibilities for the future of small land sales in Texas. At the moment, it appears small land sales purchases will include residential migrations from more dense metropolitan areas, continued rural and suburban development, and increased demand for manufacturing, shipping, and warehousing sites.”
The West and South Texas regions were the only to show increases in sales volume of small land parcels, with the West Texas region registering a double-digit rise.
“Property movement statewide was pretty comparable from 2018 to 2019 with the exception of the Panhandle,” said Charles Gilliland, economist with the Real Estate Center at Texas A&M University. “The significant increase in prices is most likely attributed to the large amount of activity from the oil and gas industry. However, the 2020 picture for small land sales in Texas will be significantly different due to the COVID-19 pandemic.”
Read the full report.