Land prices are up, but means more value for land-buyers
Land is indeed for sale, and for the first time in years, it’s being bought at a feverish pace.
In fact, according to the 2015 Land Markets Survey, conducted jointly by the REALTORS Land Institute and National Association of Realtors, last year sales and land prices were up 4 percent, and by the second half of 2014, they both doubled.
The survey, which was sent to the Institute’s 1,000 members, also found that individuals and families accounted for 61 percent of all buyers or investors in land sales transactions and are showing no signs of slowing down, especially in two regions of the country that include states from Kentucky to Florida and everywhere in between.
It’s information like this that allows Patten Companies to ensure their keen eye for land is in harmony with the needs and wants of a now eager customer base, and the findings of this survey proves their eye is dead-on.
For example, Patten Companies newest development in Flagler Beach, Fla., called Seaside Landings, is in one of the 14 states in the country where land is being bought at the fastest rate. In fact, according to the survey, 35 percent of all respondents’ transactions occurred in states from Kansas eastward to Florida.
After more than 600 members of Realtors Land Institute responded to the online survey, 87 percent of them stated they expect land prices to grow by 2.5 percent for the remainder of the year.
“The outlook appears strong for several land types and locations,” said Terri Jensen, president of the Realtors Land Institute. “The demand from expansion farmers and investors exceeds supply—particularly in the Midwest states. Grassland/ranch land demand and prices continue to be strong.”
Additionally, the survey revealed that fifteen percent of land purchasers were corporations/partnerships, twenty- three percent were investors, and nine percent were expansion farmers. Which means that the market for new landowners is as fertile as the U.S. land itself.
According to the survey, 31 percent of land bought by families or individuals was for recreation. Jensen said the results appropriately correlate to the findings that responding land professionals across the United States primarily focus their practices in agriculture (63 percent), recreation (55 percent), and development (48 percent).
The survey was conducted jointly by the REALTORS Land Institute and National Association of Realtors, of their 1,000 members polled, more than 600 responded, providing the data for this survey.
So those looking for a new home and are eager to get in the market while it’s still booming with opportunity, be sure to review Patten Companies diversified portfolio of developments across the country.
The REALTORS® Land Institute is the professional membership organization for real estate practitioners who specialize in land transactions. A 71-year-old affiliate organization of the National Association of REALTORS®, the Institute provides a wide range of programs and services that build knowledge, relationships, and business opportunities for the best in the land business. Through its best-in-class LANDU curriculum, the REALTORS® Land
A new survey is expected to be conducted in September to offer up an understanding of the land business for the second half of 2015, as well as offer expectations for 2016. We’ll update this post with those results when they are available to the public.