Rural land sales volume fell 26.5% from mid-2021 to mid-2022, according to the just released Texas Land Market Latest Developments by the Texas Real Estate Research Center (TRERC) at Texas A&M University.

“Clearly, activity appears to be slowing,” said TRERC Research Economist Dr. Charles Gilliland. “Demand for land, as reported by rural brokers, remains strong but has noticeably cooled from last year’s frenzied contest.”

Gilliland said below-asking-price offers have returned to some markets, something not seen since third quarter 2020. Fewer properties for sale in second quarter 2022, however, increased prices by 24.5% to $4,286 per acre statewide.

Total second-quarter dollar sales volume hit $3.6 billion, up 28%. That compares with a 76.7% first-quarter rise, and a 97.6% increase in fourth quarter 2021.

“A total of 850,469 acres changed hands,” said Gilliland, “up only 3.67% over 2021, suggesting market activity has fallen to a more normal level at high prices. The typical transaction expanded 9.4% to 1,293 acres.”

Prices increased by more than 21% statewide, except in Far West Texas, where they fell substantially, according to the report. However, total acres transferred declined in several regions, and total sales dropped everywhere but Far West Texas.

“This trend toward rising prices and declining activity suggests demand is dropping,” said Gilliland. “If so, brokers may begin to find ebbing enthusiasm among potential buyers.”