Texas Real Estate – it appears to be on the upswing
Curent Real Estate market in Texas
The Texas Real Estate Market seems to be doing better than most other states many of which continue to be plagued by excessive foreclosures and bank ORE sales. Although foreclosures and bank ORE sales have reflected higher than normal percentages, relatively, compared to other areas of the country, Texas Real Estate seems to be holding its own. Most bank ORE properties are being offered for sale at prices which have attracted buyer interest which has helped to decrease inventory numbers. This along with a significant reduction in new built homes has resulted, in some cases, in a limited inventory in various home lines. The same cannot always be said for the home lot inventories. As could be expected, the development of home lots and subdivisions usually outpaces homebuilding, so in a real estate downturn, there is an excessive amount of subdivision lots left on the market, either unsold or as a result of foreclosed lots that builders let go back. Until the excess inventory of unsold lots is brought into balance, it should not be expected to see a quick bounce back in the residential real estate market.
Ranchland vs Residential Real Estate market in Texas
The ranchland real estate market appears to be doing better than the residential market.There are different features to ranchland that make it sometimes more desirable as an investment during varying economic times. It's often viewed as a viable alternative to other current investments, basically being what is considered a hard asset, something tangible, not a paper investment subject to huge swings and possible total loss. Ranchland can be viewed as a great investment both during the good times the market has experienced and also during the economic downturns as an alternative investment.
Will the prices for land will dramatically increase in the near future? My guess is YES!
Currently prices for prime ranchland have not significantly dropped, there has been some indications that sellers are willing to negotiate, but there's no indication of any sort of liquidation selling.
Quite to the contrary, in the ranchland market, it appears many properties are not being marketed, but rather are being held off the market until seller's believe they can sell for what they consider a better price. With a limited inventory of good properties, and sellers not willing to sell at any price that is not acceptable as a fair and reasonable value, prices have remained relatively stable. It could be expected that with sellers holding because they don't have to sell, and with the coming expected inflation our economy is going to have, prices could actually begin to dramatically increase in the near future.