Residential and commercial sales bolstered land market in 2017
Higher prices are behind the land boom. The U.S. dollar volume of land sales increased at a stronger pace of 4 percent from October 2016 to September 2017 compared to the prior 12-month period, according to the 2017 Land Market Survey produced by the REALTORS Land Institute and the National Association of REALTORS. Sales on all types of land posted an uptick; residential and commercial land sales grew by the highest amounts.
Higher prices drove most of the increased dollar volume in land prices rather than due to higher transactions volume, the report shows.
Residential land sales increased 5 percent while commercial land sales rose 4 percent in 2017, according to the report. Sales of agricultural irrigated and non-irrigated land each increased by 2 percent, a reversal from a sales decrease in the October 2016 survey. Agricultural land sales rebounded as commodity prices for livestock, cattle, and grains stabilized after a downfall between 2012 and 2016.