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The Upper South Texas Region saw some stout sales in 2008, but a marked decrease in sales activity. We believe values actually topped out in this zone during the early part of the year, and are now retreating across the board, except for the best of the best, which is holding steady at around $2,500/acre. A sale in eastern Frio County of average, brushy hunting land checked in at a whopping $2,775/acre for 1,700 acres. Other reported sales include 2,865 acres of average brushy land with liveoaks and high fencing for $2,375/acre in western Medina County, as well as a sale of 1,142 acres under Conservation Easement on Hondo Creek (very seasonal in this area) for $1,850/acre. The hardshopped Rafter R, in SW Frio County, saw little activity throughout the year while offered for $2,550/acre. Wilson County saw the same decrease in activity as most others, with several small developments either stalling out or totally failing. 1,000 acre tracts offered for $3,500/acre to $4,500/acre found no takers, and these have retreated on their asking prices in early 2009. This is a trend seen across the region. . .a price “wall” has been found in all categories. Above this price level, activity will not occur unless the property possesses highly unusual, desirable attributes. In Wilson County, this number appears to be $5,000/acre.

The Upper South Texas region reported 2007 median sales in the $2,500/acre range, with value drivers being access, minerals, brush quantity and quality, and game habitat. Unimproved sites are valued more highly than those with significant expenditures in lodges, outbuildings, etc., particularly on larger parcels. A significant transaction occurred in western Frio County, where the sale of 8,100 highly improved acres under high fence was reported at $2,500/acre, which most agree was a good buy for that particular site. 1,700 acres of brush north of Pearsall traded for $2,361/acre, then placed back on the market for $3,000/acre, with contract reported in early 2008 in the $2,700/acre range. A solid 2,500 acres in Frio traded north of $2,800/acre in mid-year, while the hard-shopped Rafter R broke off a couple of chunks that were taken down for $3,500/acre (river property) and a 3,000 acre non-river piece for $2,450/acre. A significant transaction occurred in southern Uvalde County on the Leona River of 5,500 premier acres trading for over $3,000/acre. Atascosa County saw the bar raised to almost $3,000/acre for 500 acre parcels during this year, and land subdividers continued to exploit that area due to its relatively low prices and close proximity to San Antonio, which drives ranchers away. A market for irrigated land thrived and continues to build momentum, as value is attached to water rights and agricultural productivity. Senior Edwards water rights traded north of $2,500/acre, and general interest in even brackish water has increased. It is doubtless that water will soon become an even more valuable resource, and those with economically feasible desalinization capabilities will dominate those markets. Uvalde County continues to thrive, as Uvalde itself has become something of a “boom” town, and is definitely a hub of economic activity. The most desirable criteria for land in this zone is based on recreational attributes, such as surface water, brush quality and quantity, and game habitat. Wilson County continued to explode, as reasonably priced land within 45 minutes of San Antonio lures developers and speculators alike. These productive lands have increased appeal to ranch buyers, as the factors of water, minerals and soil quality become more important to more buyers. The fact that these lands are 1/3 the price of equivalent land in the Hill Country is not lost on this observer, either.

Upper South Texas remains on a steady, uphill course, with Wilson Countycontinuing its torrid trend due to proximity to San Antonio, as Floresville has become a bedroom community of sorts. Subdividers scour the countryside for parcels with road frontage, hungry to carve them into acreage tracts. Several smaller (150 acre) farms sold in the $2,500/acre range. Atascosa County saw several significant transactions of well over $2,000/acre, while development-type parcels closer to the Toyota plant spiraled to well over $5,000/acre. The southern part of Medina County has awakened, due to good hunting + proximity to SA for recreational buyers. A Medina River sale of 750 acres at $7,000/acre closed in early 2007. Even marginal parcels of 250+ acres reached the $2,000/acre level, with presence of creek or river water driving that up yet another 50% or more. A problem of this area is the widespread presence of low-end, unrestricted residential subdivisions, and the accompanying visual and social pollution they bring. Even Yancey has seen its share of mobile home traffic recently, much to the chagrin of some of the more substantial landowners in the area. Frio County saw a highly improved 1,500 acres with minerals sell for $2,600/acre, then be put back on the market for 40% more! A highly improved Uvalde County ranch on the Sabinal River (3,300 acres) sold and closed for over $2,200/acre. A good 9,000 acre farm/ranch on the Frio River adjoining closed at about $1,500/acre as well, with the river portion put back on the market for $2,500/acre. Excellent agricultural and recreational features will continue to support appreciation for this area, which is still the closest “brush country” to San Antonio. With the proliferation of superior whitetail genetics under high fence, and the accompanying live market for breeder bucks and does, one doesn’t have to be in the “golden triangle” of South Texas anymore to enjoy hunting trophy whitetails.

Upper South Texas continues to steadily appreciate, with Wilson County becoming a hot spot due to residential growth centered around Floresville. Wooded land was hard to come by, as developers are snapping it up as quicky as it hits the marketplace. Open farmland showed appeal for subdividers, with strong demand for 10 to 30 acre tracts within 30 minutes of San Antonio. Few large tracts changed hands for less than $1,500/acre. A sale of 400 acres just west of Floresville hit $1,700/acre, and a 750 acre parcel on the San Antonio River to the southeast checked in at $1,400/acre. Atascosa County, crazed by the nearby Toyota plant, has hit the ceiling, with sales of significant parcels topping the $5,000/acre mark. Southern Atascosa still offered select tracts for less than $1,600/acre, but the wooded sites with good access and minerals are headed for the $2,000/acre benchmark in 2006. Medina County has awakened, with the driver being San Antonio commuters looking to raise a horse and/or shoot a deer. Yancey, once a bargain hunter’s haven, saw average prices for 500 acre parcels climb to $1,500/acre with no end in sight. Unfortunately, many small tract fragmenters have entered that area with their carving knives sharpened. Though this activity drives prices up, it also tends to drive perceived recreational value down, thus it becomes a double-edged sword for the savvy investor/user.

Upper South Texas, like the inland plains, showed steady gains as well in 2004. Large wooded recreational parcels were in short supply, though there were several large working cattle ranches shopped round throughout the year. These mostly-ag properties are selling for $1,200 to $1,500 per acre, depending upon location and improvements. This zone seems to favor ag-type tracts more than any other, probably because soil conditions, on the overall, are among the strongest in all of Texas for cattle grazing, dryland and irrigated farming. Choice Medina County irrigated farmland is selling for $1,800/acre and up. Unimproved brush land in the same area is 20 to 25% less. Low interest rates available to ag producers is fueling these sales, though the hunters remain a strong buying segment as well. Karnes County finally showed some strong value increases, as it has been a “sleeper” for the past several years. It is now difficult to find anything in that county for less than $1,000/acre, though two years ago you could buy all you wanted for $750/acre. Atascosa County, due to its proximity to the new Toyota Plant, has experienced a “mini-boom” in recent months. Many small acreage tract subdivisions are springing up in both it and Wilson County, creating uncomfortable rapid growth for these relatively unsophisticated populations unused to hoards of commuters racing down the dusty country roads. 500+ acre tracts in these counties with trees, paved frontage and minerals are rarely found for less than $1,000/acre, though there was a confirmed sale in NE Wilson County of $780/acre for a 170 acre tract with trees, county road frontage and minerals.