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land market

Newly Released Report Shows Slow But Steady Growth In The National Land Market

January 22, 2020 (Chicago) The Realtors® Land Institute (RLI) and National Association of Realtors® Research Group just released the results of their latest Land Markets Survey. The 2019 Land Markets 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 single family homes, 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 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 2019 Land Markets 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.

RLI’s 2020 National President, Kyle Hansen, ALC, stated “The land market continues to see local volatility. Due to this volatility, it is important to have someone working for you who has a deep understanding of local markets and trends. No property is 100% comparable to another. It takes a dedication to our clients and meeting their needs, which is something RLI members, especially those who have earned RLI’s elite Accredited Land Consultant (ALC) Designation, continuously strive to provide. An RLI member is who you need to contact to get the best advice when buying and selling your most valuable asset, your land.”

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

Download Report As PDF | Download Press Release As PDF

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.

For additional information, please contact:
Jessa Friedrich, MBA, Marketing Manager
800-441-5263 | jfriedrich@realtors.org

land real estate market

2018 Land Market Survey Shows Slow But Steady Growth In The National Land Market

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.

2018 Land Markets Survey

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.

 

Download Full PDF Press Release
Download Full PDF Land Market Survey Report