The Annual Land Market Survey
The Land Markets Survey is conducted annually each fall by the REALTORS® Land Institute and the National Association of REALTORS® Research Group as a tool for real estate land professionals in all sectors of the business to use for bench-marking and as an informational resource when conducting business.
The survey is designed to reveal current trends and the current state of land markets across the US. RLI encourages all land real estate agents to participate in the survey to ensure it is as accurate in representing the actual state of the land market each year. For more information about this survey, contact us at 800-441-5263.
On January 21, 2020, The Realtors® Land Institute and National Association of Realtors® Research Group released the results of their annual Land Markets Survey. The 2019 survey showed sustainable growth in both national land sales and land prices. Survey respondents reported a rise in sales for all types of land, led by residential and recreational land. The median price per acre of land transactions during October 2018 and September 2019 increased to $5,500 from $4,500 during the prior twelve-month period. The increase is mainly due to a higher price per acre of residential land as demand for affordable housing, and the land it is built on, continues to increase.
Although an increase was seen for both land sales and prices, for the second year in a row now growth was at a slightly slower pace than the previous year. Respondents indicated that the slowdown is likely a result of current US economic conditions, financing, and local zoning as well as depressed commodity prices. Additionally, the survey found properties were spending a longer time on the market before selling than in previous years, with land typically on the market 120 days, compared to the typical 90-100 days seen in past surveys.
As for the 2020 outlook, respondents expect a 2.2% sales volume increase in the next 12 months, with the strongest growth being predicted for residential, industrial, and irrigated agricultural lands. Despite the predicted increase in sales volume and a predicted increase in land prices for all land types, they expect the land price growth to be slower at a rate of 1.6% in the next 12 months.