Scroll down for preceding years

The Inland Plains also saw a nosedive in sales activity, as land and ranch brokers got to catch up on their sleep from the frenzied 5 years previous. This office participated in sale of 170 acres on the San Marcos River at Luling for $4,700/acre with partial minerals, as well as 246 extra-nice acres near Smiley, in Gonzales County, for $3,620/acre with partial minerals. As with other areas, however, many of these area sellers refused to budge from their 2007 expectations, and most of them still own the land they were trying to sell. Several Guadalupe and San Marcos River sales in the $4,500/acre to $5,000/acre range were observed, and we believe that $5,000/acre is “the wall” for river properties in this area for the foreseeable future. As always, properties with good access, clean shape and average to good condition will command more than marginal ones. The “water wars” over the Carrizo Aquifer have slipped into the courts or mediation, with outcomes yet to be decided. Thirsty metropolitan areas are aggressively pursuing water development and marketing business models, but are being challenged by locals fearful of resource exploitation, and rightly so. Ironically, several large landowners have cut private deals with the water companies, and this may allow them to proceed with the exploitation while skirting around the organized, smaller landowner groups. We see asking prices in Gonzales County rarely below $3,000/acre, with corresponding slow sales activity. This is very similar to Lavaca County as well. Guadalupe County kept a steady pace thru most of 2008, but now shows signs of the times with decreased activity, and failed/stalled developments. We see asking prices rarely less than $3,000/acre in this zone, depending upon location and amenities, and are finding that buyers are willing to pay over $4,000/acre for the top 25% of land having many oaks, paved frontage and clean shape. Karnes County slowed to a crawl, as average asking prices topped $2,500/acre. For sellers with quality merchandise, it’s still a good time to sell, but price your offering competitively from the get-go, keep it looking its Sunday best, and don’t try to hang on to too many minerals or water rights if you want to have a successful closing.

The Inland Plains remain somewhat of a sleeper, though values continue to climb, but not to levels of the Hill Country as of yet. As median prices approached $2,750/acre, activity slowed but didn’t stop. By year’s end, sales of near $3,000/acre were being registered, including an 863 acre transaction on pavement near Belmont for $2,800/acre. River sales on the San Marcos and Guadalupe of 100+ acre parcels averaged $5,000/acre. In eastern Bexar County, a 273 acre live water parcel was purchased for $2,600/acre and resold for $3,400/acre before end of year. Guadalupe County saw intense developer activity around Seguin, and several sales in the sandy country south of town topped $3,000/acre, including a parcel of 1,900 acres on highway that checked in at $3,300/acre with improvements. DeWitt County ranchland routinely trades for above $2,500/acre, and minerals are becoming scarce and valuable in DeWitt/Karnes/Gonzales Counties. Marginal land with no oaks and poor access has hit the wall at $2,500/acre in this area, but the top shelf stuff with good water, oaks, views and access can fetch up to $4,000/acre. Eastern Karnes County saw a 3,000 acre parcel with fair minerals trade for $1,850/acre, while Lavaca County soared to $3,000/acre for ordinary land. This firm participated in a transaction involving 160 acres NE of Gonzales for $2,300/acre, and offered a slick 250 acres with big irrigation well near Smiley for $4,000/acre with no takers, though a contract has been accepted in early 2008. This area has become ground zero for exploitation by San Antonio and Austin, who seek water, gravel, topsoil and other natural resources for their exploding development. This has resulted in compromising situations for landowners, who face the question of allowing exploitation of their lands for profit vs. preserving them for austerity. As we all know, $ win that battle 90% of the time. Locals are organizing to oppose and/or present a united front on issue of water marketing in particular, the outcome of which shall prove to be quite interesting

The Inland Plains area showed perhaps the most striking gains of our territory, leaping from the 2005benchmark of $1,500/acre to a 2006 median of close to $2,500/acre. This represents an increase of 200% in the last 3 years! Gonzales County continues to catch the eye of investors and users alike due to its excellent proximity to Houston, Austin, San Antonio and the Gulf Coast. This land is pretty to look at, will produce quality beef and wildlife and possesses mineral and groundwater potential. A sale of 100 acres with no improvements on a major creek near Smiley is confirmed at $2,650/acre. The lowest sales included 900 acres in southern Gonzales County for $1,875/acre, and a rough 800 acres near Ottine for $1,850/acre. Some smaller San Marcos and Guadalupe River sales checked in at $4,000/acre. Goliad County hit the $2,000/acre mark as its benchmark, though the more remote locations to the south are far below that. Minerals are scarce in Goliad, Karnes and Victoria Counties, and oak trees and degree of refinement are major value contributors. DeWitt County saw average 200 acre parcels reach the $2,000/acre level, with river tracts 50% higher or more. Lavaca County, too, topped the $2,000/acre mark for average land, though mineral availability is increasingly scarce due to gas play. Even long-suffering Karnes County approached the $2,000/acre mark, and a significant transaction in early 2007 of over 3,000 acres logged in at $1,850/acre. As always, presence of oak trees, public road access, enough brush to hold deer and ample surface water are prime value additions. Parcels lacking these attributes are still docked on price by the buying public, and marginal improvements are found to add little to no value.

The Inland Plains area showed a dramatic surge in 2005, with $1,500/acre becoming the benchmark for wooded parcels. This number continues to rise into 2006. The record appreciation rate is estimated at 25% for the year, and this appears to be running the same course into 2006. A sale of 500 acres on the Guadalupe River east of Gonzales was facilitated by our office at $1,950/acre with a pinch of minerals. A sale of 150 acres on a live creek near Smiley is verified at $2,650/acre, though improvements were nice and included an irrigation well. Karnes County moved up nicely, with sales on the San Antonio River reported at close to $2,000/acre, and brush land to the west pushing $1,500/acre. Minerals becoming harder and harder to get due to play east of Kenedy. The Seguin area has seen fragmentation to the point of no return, and rooftop developers are scouring the area for flat farmland to plunder and pillage with streets, utilities and crackerbox houses. Guadalupe County in general has topped $2,000/acre, with nothing on the Guadalupe River selling for less than $2,500/acre in 2005. DeWitt County has also spiked, with river sales exceeding $2,000/acre. The driver is the Houston market, now beginning to realize the true value and usefulness of this land, coupled with the shorter drive time as opposed to the Hill Country. Lavaca County saw some transactions on the Lavaca River under the $2,000/acre mark, and there were still some wooded hunting parcels in the more remote areas available for less than $1,500/acre. This will change in 2006, and we fully expect to see the magic number hit $2,000/acre for tracts with oaks, decent access and at least a smidge of minerals.

The Inland Plains area of DeWitt, Gonzales, Caldwell, Karnes and Guadalupe Counties showed steady gains, but not of the spectacular variety of the Central Hills. A shortage of larger parcels was evident throughout the year, with only a couple of sales of 1,000+ acre parcels reported. This includes the 2,200 acre Peach Creek tract in NE Gonzales County selling for $915/acre in early spring, then having 1,500 acres split off and resold for $1,400/acre in the fall. This property has outstanding tree cover with extensive road frontage, and is regarded as above average with marginal minerals. Demand for 75 to 250 acre parcels remains strong, with prices of $1,300 to $1,600/acre being the norm. Significant minerals can add up to $200/acre to value in these areas. Several low-lying Guadalupe & San Marcos River ranches in the 500 acre range changed hands in the $1,400/acre bracket. % of flood plain is a major value factor, as is tree cover. Lowlands with no trees are hard to sell, and rolling, wooded lands fetch top prices and sell quickly. Rolling, open properties stay on the market longer, even though there is a fairly strong supply of ag-type buyers with low interest money to spend. Another price driver in this region is lakes/lake sites, as creeks and rivers usually create a large % of “boggy” country. Sizable lakes offer recreational potential for fisheries, waterfowl and boating, not to mention water and jet skiing, minus the problem of flooding. Overall, this zone will continue to see a shortage of large parcels available for purchase, but when they do hit the market, they should sell quickly for $1,100/acre to $1,500/acre, depending upon access, location, minerals and tree cover.