Prices in Texas land markets continued to rise in the first half of 2017 about 4.3 percent above price in the first half of 2016. The deflated price (in 1966 dollars) even rose 2.3 percent over the first half of 2016. Markets managed to produce these improvements despite a record rise since 2004, weak commodity support for cropland, and continued uncertainty in energy markets. In addition, markets are more likely to sustain the modest level of increase in the long run than the frenzied growth in the 2013-2014 markets. Market participants continue to enjoy robust demand in active markets.
The first half price of $2,590 per acre eclipsed the 2017 first quarter price by a 1.1 percent growth rate. Those figures document another record level for Texas land markets. Property size at 1,493 acres moved up a substantial 226 acres over 2016 first half markets. Although the 5,100 sales lagged 97 transactions short of 2016 first half volume, these statistics reveal another record setting year.
Political uncertainty, falling value of the dollar, and continued prosperity promise to support current price and volume trends for the remainder of the year. Seeking a stable store of wealth fueled by expanding personal incomes, Texans keep on buying acreage. The obvious dark clouds float in on the flood of oil and glut of agricultural commodities. Never the less, trends promise another record year for Texas land markets.