A panel of Accredited Land Consultants and seasoned land professionals of the REALTORS® Land Institute (RLI) shed light on the impacts of the Coronavirus (COVID-19) outbreak on land values and land market trends across the country in a recent Virtual Round Table session. The panel, which consisted of expert land agents from across the country, mostly pointed towards a positive outlook for the land market despite volatility in other areas.
COVID-19 land real estate trends are continually evolving. For the most up-to-date information on the land market in your area, contact a land agent near you. Opinions and advice expressed in this session are not necessarily endorsed by the REALTORS® Land Institute and information should not be construed as recommendations for any course of action regarding financial, legal, investment, real estate, or accounting matters without further consultation about your unique circumstances by a land expert in your market.
Rural & Suburban Residential Trends
Demand has been strong for housing in both the suburban and rural markets, which is impacting the vacant residential land currently on the market. Small-acreage parcels are being absorbed quickly across the country for custom homes, and large-acreage parcels being bought by builders and developers.
"With home builders still ramping back up after hitting the brakes earlier in the pandemic, and existing home inventory at just three months of supply, demand is far outpacing supply, putting upward pressure on pricing across the board." -Matt Davis, ALC
Buyers are purchasing properties with record-low lending packages thanks to extremely low interest rates, and many banks are now offering excellent financing terms on vacant land. These conditions are creating a strong seller's market on most land purchases priced under $1 million.
Regional Market Trends
The recreational market in the Rocky Mountains is the strongest it's been in years. Warm-weather states such as Texas, Arizona, Nevada, and California are huge feeder markets for high-country mountain properties. Since the majority of the occupants in these warm-weather states can now work from home, they're choosing to leave these states and move to cooler climates.
- COVID-19 land real estate trends show buyers in warm-weather climates seeking real estate in cooler-weather climates such as the Rocky Mountains.
In general, buyers are looking to relocate from the more populated cities across the U.S. into more rural areas of the country, such as Oklahoma. RLI agents in Oklahoma are currently experiencing delays in closings due to the appraisal industry being in high demand for new purchases across the state.
"The greatest impact in Montana has been on the high-end residential market in listings with more space and privacy." -Trent Lister
The high-end real estate market ($2 million+) is in high demand in rural mountain towns such as Bozeman, MT. Buyers are looking to purchase quality homes on large-acreage parcels in search of the elbow room and privacy less often afforded by an urban lifestyle.
Navigate COVID-19 Land Real Estate Trends with an Accredited Land Consultant
If you are planning to buy or sell land, make sure to find an Accredited Land Consultant (ALC) to ensure you are working with an agent that has the expertise and experience to best handle your transaction. ALCs aren’t just land sales professionals: they are the most prestigious, the most experienced, and the highest performing land sales experts in their area. Achieving the ALC designation is not an easy feat. It can take years to complete the rigorous education program and establish a proven track record of transaction performance in land before an agent can qualify. It also requires a commitment to professional growth and conducting business with integrity.
Thank you to our panelists for offering their expertise in identifying COVID-19 land real estate trends:
Moderator | Eric Zellers, Ary Land Co | KW Advantage Land | Tulsa, OK
Development/Commercial Land | Matt Davis, ALC | Cushman & Wakefield | San Diego, CA
Agricultural Ranch Land | Clayton Pilgrim, ALC | Century 21 Harvey Properties | Paris, TX
Agricultural (Tillable) Farmland | Kyle Hansen, ALC, RLI 2020 National President | with Hertz Real Estate Services | Nevada, IA
Recreational Land | Justin Osborn, ALC, 2020 Future Leaders Committee Chair | The Wells Group Real Estate Brokerage | Durango, Colorado
Rural Residential Hobby Farm Land | Drew Ary, ALC | Ary Land Co / KW Advantage Land | Coweta, OK
Ranch and Rural Residential Land | Trent Lister | PureWest Real Estate | Bozeman, MT