The 2023 housing market uncertainty also extends to rural land, according to a recent study by National Land Realty. However, most agents are staying with a positive mindset and many buyers are using the slight price depreciation to snap up land.
National Land Realty released its 3rd annual land real estate agent and broker survey. Among the key findings are that while 2022 was a year with many properties appreciating, many agents see 2023 becoming a year of stabilization and limited depreciation, yet only a very small number of agents [7.54%] foresee a depreciation of more than 5%.
Agents expect 2023 to be another busy year where they expect buyers to make use of opportunities offered by a limited price correction. They remain positive about their business prospects this next year with almost two-thirds [64%] either somewhat or very optimistic.
“Even with the macroeconomic headwinds on the horizon, most of our agents continue to be positive about their business prospects over the next year,” said Jason Walter, CEO of National Land. “Buyers continue to look for investments that offer stability in economically volatile times and land continues to be appreciated by investors for the stability it offers.”
The survey showed that there was a notable land appreciation in the rural land real estate sector in 2022 with almost two-thirds [64%] of agents seeing a slight to an often significant increase in land values, with recreational, farmland, and residential being the standout types.
“What is significant is that while our agents are seeing a positive business outlook in 2023, they are nonetheless expecting a softening of land appreciation with almost a third of them not expecting any appreciation at all,” said Walter.
Land Values in 2022
Last year, brokers saw recreational land increase the most [49.07%], followed by farmland [20.37%]. Residential came in third with 17.59% of brokers saying that this type of land increased the most. Timberland [7.41%] and ranch land [4.63%] rounded out the top five.
2021-2022 Land Value Appreciation (based on % of agents)
2023 Land Appreciation Agent Outlook (based on % of agents)
|Appreciation||% of Agents|