Looking for Land? Austin Market Shows an Increase in Land Sales
Known for its seismic proportions, it's hard to imagine that Texas could get any bigger. But growth is evident across the state, from its thriving local economies to its influx of out-of-state residents looking to relocate to the Lone Star State. Homes are barely listed on the real estate market before they are snatched up by anxious buyers looking to get their hands on the hot property in Austin and other metropolitan areas in Texas.
While it's not surprising that home sales are on the rise, many industry insiders are surprised that Austin and the surrounding region are in the lead with the number of land sales that have taken place in the last year. It appears that buyers are starting to push the city limits and expand outward, purchasing rural land when possible in order to build their dream property in an ideal location.
What to Know About Land Sales in Austin
- Recent data from the Texas Small Land Sales Report showed that the most land purchases were made in Austin, Waco and Hill Country. There was more than 2,400 land sales in this region during 2016 alone, which is an increase of about 21 percent from the previous year.
- Those land sales comprised about 35 percent of all land that was purchased in the state of Texas during 2016 — and the amount of land totaled more than 55,000 acres.
- Throughout much of Texas, the cost of land has held steady, but the demand in Austin has caused land prices to rise throughout the last year. The average price per acre in Austin and the surrounding area was about $8,600, while the average price per acre across the state was $5,600.
What's Driving Land Sales in Central Texas?
Farming has always been big business in Texas, so the majority of land sales that are completed in the state are driven by those who are interested in getting into agriculture. Perhaps they want to start that dream ranch, or they have a history of farming in their family and they want to uphold the tradition. Typically, this has been the reason that residents invest in small land purchases in the state.
While farming may be the sole reason behind many land sales in Texas, it's not the driving force behind the startling increase in land sales in Austin and surrounding real estate markets like Lakeway. Rather, buyers are purchasing land in hopes of developing it. For some, it's the opportunity to build a home rather than fight for one within the competitive housing market. For others, it's a chance to make an investment in an up-and-coming market while also addressing the demand for high-quality, new construction homes in Austin.
Like the residential housing sector of the Austin housing market, the market for land is expected to continue to grow and prosper in the months and years ahead. With a strong economy, Austin is poised for continuous growth, which will increase home sales, property values and acreage prices throughout the entire region.
Whether you are looking for a home for sale in the heart of Austin or you want to find a piece of land outside the city, the best thing you can do is partner with a qualified real estate agent who understands the local market. Unlike the rest of the country, Austin is enjoying a booming market that boasts high sales volumes as well as comfortable inventory levels. Now is a great time to get involved in the Austin market, so contact our real estate team today to learn more information.