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The Central and Eastern Hill Country saw five digit prices become commonplace in 2007. This company participated in a sale of 273 acres near Sisterdale on cypress-lined West Sister Creek that topped $14,000/acre, as well as facilitating a 350 acre sale just west of I-10 with raw scenic beauty, but no significant water for $7,500/acre. Kendall Country purchased a 405 acre parcel of land with live water, good improvements and I-10 frontage for a reported $14,000/acre for use as a county park. Blanco County broke loose with a $9,200/acre sale near Henly with live water, while a couple of other sales included a rough but pretty 930 acres west of Blanco for over $4,500/acre, and a nice buy neglected 380 acres in same area for $6,000/acre. The 930 was split and offered in smaller tracts for up to $8,500/acre, while the 380 acres is back on the market for $12,000/acre. Both of these resale offerings appear to be optimistic, to say the least. Conservation easement tracts on the Pedernales River east of Johnson City were shopped in the $10,000/acre range with little success during the year, while a very nice 360 acres with large lake on highway near Henly floundered at $12,500/acre, asking price. Gillespie County continued its torrid pace, as 216 acres at Enchanted Rock with no live water sold for over $10,000/acre, while other water tracts in the area sat still at $8,000 to $10,000/acre asking prices. A 420 acre tract on Hickory Creek sold for over $4,000/acre, then offered for resale at twice that with no takers. An 1,100 acre ranch on Crabapple Creek was again offered throughout the year for $8,000/acre with no action, though access issues play a prominent role in this failed offering. Llano County saw fewer sales and higher prices, and most offerings consisted of larger parcels being subdivided into 40 to 100 acre tracts. This market seemed brisk heading into 2008, as buyers with $250 - $500K remain active “on the street,” while the big dogs lie in the weeds, waiting to see what might happen next. Mason County was in high gear, as average land with no water topped $2,500/acre, and water parcels, if available, top $4,500/acre in the 250 to 500 acre range. Several 150 acre tracts with springs traded for $2,500 to $3,000/acre just west of Mason. This writer’s family now owns one of them. Working back towards Austin, Hays County saw sales of regular, cedar-choked land on pavement top $10,000/acre in tracts of 100 acres, and parcels with marginal live water, including an 800 acre tract near Henly, are selling for $8,500/acre. Groundwater issues loom for this zone, and the voice of the environmental community gets louder and louder with regard to dense development, which may ultimately limit appreciation.

The Central and Eastern Hill Country continued its torrid pace of Aspen-like prices becoming the norm. A number of live water sales in Kendall County checked in at $10,000/acre or more, with one sale on the Guadalupe River topping $15,000/acre. The cheapest land in Kendall County was priced at $4,800/acre with poor access and other major negatives. This firm participated in several major sales in Blanco County, ranging from 563 acres on the Pedernales River in January, 2006, for $6,600/acre to the benchmark Cuatro Hermanas Ranch sale of 732 acres on upper Onion Creek for almost $14,000/acre in Sept., 2006. The least expensive land in this area was a 1,050 acre parcel that sold for about $3,300/acre just north of Canyon Lake in Comal County in late 2006. This firm was involved in resales of 150 acre parcels just east of New Braunfels that averaged $8,000/acre out of a 465 acre parent tract. Gillespie County spiraled out of sight, as sizzling Fredericksburg has become a “mustown” location for out of state buyers. The Campbell Ranch of 1,200 acres sat on the market all year for $7,950/acre, though access issues proved to be burdensome to marketability. Sales in the Enchanted Rock area were brisk in the $4,500/acre range, and a 250 acre tract on the Little Llano River fetched $4,600/acre through this firm. Llano County saw prices on marginal land top $3,000/acre, and there were reports of significant sales on the Llano River approaching $10,000/acre. Mason County has become a desirable address for many “suburban” land sellers looking to escape the ever-encroaching rooftops, though land in that county topped the $2,000/acre barrier in the early part of the year. The lowest big live water sale this office is aware of was 1,200 acres on the San Saba River for $2,300/acre. This same sight was cleaned up a little and offered again for $3,800/acre. The landmark sale of the year occurred in Burnet County of the 21,000 acre Goodrich Ranch on Lake Buchanan with miles of live creeks. This site is spectacular, but marginally accessed with much rough country, and fetched about $3,300/acre according to sources. It has since been broken up into large tracts of 1,000 to 5,000 acres with asking prices in the range of $5,000/acre on average. 5,000 acre Rancho San Miguel in far northern Blanco County traded for over $3,000/acre.

The Central and Eastern Hill Country again boggled the mind with Telluride-like prices and large sales dominating the headlines. Kendall County, in particular, had some 50 to 150 acre creek sales in the Joshua Creek valley hitting the $15,000/acre mark. Surprisingly, some Guadalupe River parcels were shopped hard at $10,000/acre with no takers, though less-fashionable school districts proved to be somewhat of a stigma to the buying public. A 160 acre parcel with extraordinary water on the upper Blanco River sold for $9,400/acre, with some other area sales checking in at similar levels, though all had outstanding natural water features. Those with no water flow traded for up to the $4,000/acre range in northern Kendall and southern Gillespie Counties. Blanco County again showed sharp gains, particularly along the US 281 corridor, though remote parts of the county found some tracts with flowing water still available for less than $3,000/acre. The Pedernales River saw transactions topping $6,000/acre, and a significant transaction east of Johnson City was reported to exceed $8,500/acre. Generally, the closer to Austin, the higher the price, with the 45 minute drive time from the State Capitol showing up as a benchmark for value. Sales for 25 acre tracts were brisk, with the average price hovering around $8,000/acre. A sale of about 165 acres on a live creek in the range of $4,600/acre near Johnson City was reported. The Wimberley area continued on its torrid pace, with a value leap of about 20% for the year, though Dripping Springs slowed a little, possibly due to a moratorium on development in the immediate area. A significant sale of 800 acres on Onion Creek near Driftwood logged in at over $10,000/acre, while a 250 acre parcel on Gatlin Creek between Dripping Springs and Wimberley was reported at near $9,000/acre. Comal County spiked, with several 150 acre sales verified at $8,000+/acre. A sale of a 2,700 acre parcel between New Braunfels and Canyon Lake was reported in the $6,700/acre range. Another sale of 1,000 acre on I-35 near New Braunfels was verified at $8,500/acre, with no utilities yet committed to the site. Blackland south and east of I-35 could still be had for $2,000/acre or less, though the possibility of major highways passing thru has created a recent wave of activity spilling into 2006.

The Central and Eastern Hill Country showed the most activity, with several eye-popping sales in Kendall and Hays Counties. Most notable was the much-discussed series of sales of the 5,000+acre “Broken O” Ranch in the hills west of Boerne. This fabulous remnant of the former “Seven Eleven” Ranch features fire-hydrant springs, sizable lakes, spectacular scenery and remote accessibility. The final sale was said to exceed $7,000/acre, with the property supposedly earmarked for small tract residential development of the upscale variety found in steadily growing Cordillera Ranch to the east. Another remarkable transaction occurred just east of Wimberley, with the “Cougar Bend” Ranch of 421 acres on the Blanco River selling for a reported $22,000 per acre. This property does have a fine home which contributed about $4,000/acre to value. Blanco County saw several strong water ranches sell for $4,500 to $5,000 per acre, including the successful purchase and resale of the 2,100 acre Clear Rock Ranch near Henly by us, with resale water tracts of 400+ acres averaging $4,600/acre. Our group also closed out the 50 to 100 acre tract division of the former Nagle Brothers ranch of 800 acres near Dripping Springs, averaging $6,000/acre for the parcels, none having live water. Due to minimal regulations, Blanco County is seeing a proliferation of 25 acre tract subdivisions marketed to commuters/investors from both Austin and San Antonio, with mediocre sales success reported at $7,500 to $8,000/acre. Proximity to the US Hwy. 281/290 corridors seems to be a key to success for this type of development. 1050 acres on 281 south of Johnson City sold for $2,800, while an improved 1,000 acres closer to Blanco fetched slightly more. Guadalupe River 500 acre tract values are running in the $8,000 to $10,000/acre range, depending upon location, with the Blanco River doing about the same, though it spikes closer to Wimberley. Non-water tracts north of Canyon Lake can still be found for $3,500/acre in both Comal and Blanco Counties. Pedernales River from Fredericksburg to Lake Travis runs from $6,000 to $10,000/acre, and any live water land within 15 miles of Fredericksburg is hard to find for less than $7,500/acre. As always, cypress trees seem to add about 20% to value of water properties, as do deep swimming holes and 3+ foot high waterfalls. Large, permanent-flowing springs are at a premium as well, especially when the water flowing from them stays on the site for a significant distance. 500 acre tracts in this zone with a permanent flowing creek should fetch $4,500/acre and up, depending upon flow volume, location, topo and improvements. This number could reach as high as $10,000/acre for the most choice areas and unusual parcels.