The highly-anticipated Land Market Survey is out! Every year, REALTORS® Land Institute and the National Association of REALTORS® Research Group conduct this survey for land professionals across America to use as an informational resource. The land industry faced many challenges (such as natural disasters and uncertainty on the long-term effects of the current trade war) and many victories (such as the WOTUS ruling and an overall strong economy). Let’s take a look at some of the biggest takeaways from the 2018 Land Market Survey.
1. Land Prices Are On The Rise, But Slowly
Average land prices across America rose, but at a slower rate than previous years. Land prices rose 2% in 2018, compared to 3% in 2017. This slower gain could be a result of rising interest rates and depressed commodity prices.
2. The Price of Land Bought and Sold Went Down
Across all land types, the median price per acre decreased to $4,500. The amount of land being bought and sold also decreased to a median of 53 acres. However, some land types actually saw higher sizes and prices in 2018. Agricultural irrigated land, timber, recreational, and ranch land all increased in price per acre over the year, while agricultural non-irrigated, timber, residential, and ranch land increased in property size.
3. Financing Was The Number One Issue Facing The Land Industry
49% of respondents said that financing was an issue affecting the land industry. Local zoning, federal zoning, state regulations, and tariffs were also mentioned as top issues.
4. Land Is Being Sold Faster.
While some land types struggled in 2018, the median number of days a property would sit on the market decreased from 95 in 2017 to 90 in 2018.
As with any year, 2018 was a year of many ups and downs for the land industry. It’s impossible to predict what will happen next, especially in this industry. However, the data from the Land Market Survey can help us plan for whatever 2019 has in store for us and help make it the best year yet.
Want to learn more about the current state of the land market? On January 23, Scholastica (Gay) Cororaton, a research economist at the National Association of REALTORS®, hosted a survey going into the nuts and bolts of the Land Market Survey. The live webinar quickly sold out, but don’t panic! You can still watch the recording for free on our webinar archive page. The recording will be posted the week of January 28th.