January 16, 2019 (Chicago) – The Realtors® Land Institute and National Association of Realtors® Research Group released the results of their annual Land Markets Survey. The 2018 Land Markets Survey showed sustainable growth in both national land sales and land prices. Survey respondents reported a gain of two percent year-over-year increase in land sales and a two percent increase in land prices between the October 2017 and September 2018 period being measured.
Although an increase was seen for both land sales and prices, growth was at a slightly slower rate than the previous year. The slowdown is likely a result of rising interest rates, potential negative impacts of the tariff/trade war, and commodity prices still remaining depressed. The overall slowdown of the land market is primarily attributed to the modest gains across residential land sales (four percent from five percent), commercial land sales (three percent from four percent), and agricultural land (one percent from two percent) compared to the previous year. Additionally, the survey found properties were sold in a shorter time frame than in previous years with land typically on the market only 90 days, compared to the typical 95-100 days seen in past surveys.
Although respondents reported an increase in land sales and properties sitting on the market for a shorter time, they still expect to see a slower land sales market in 2019. Survey participants listed financing and zoning issues as the two major issues affecting land sales. A lack of comparable land values, appraisal issues, and rising interest rates were also mentioned as some of the biggest issues facing the land industry.
RLI’s 2018-19 National President, Jeramy Stephens, ALC, said “With so many factors making land transactions harder to navigate, it is more important than ever for land buyers, sellers, and investors to find an agent certified as an expert in land real estate – like an Accredited Land Consultant (ALC) — for their transaction.”
The annual Land Markets Survey is a tool for landowners and land real estate professionals in all sectors of the business to use for bench-marking and as an informational resource when conducting business. This year marks the sixth consecutive year that the survey has been conducted to reveal current trends and the ever-changing state of land markets within the industry; and this year’s survey had the highest participation rate ever. The Realtors® Land Institute has made the full survey results available for free to the public on their website at rliland.com/about-realtors-land-institute/land-markets-survey
About the Realtors® Land Institute
The Realtors® Land Institute, “The Voice of Land,” continually strives to maintain its status as the acknowledged leader for all matters pertaining to the land real estate profession. The Realtors® Land Institute provides the expertise, camaraderie, and valuable resources that are the foundation for all land real estate professionals to become the best in the business. For more information, visit rliland.com or call 800.441.5263.