Texas is home to a thriving economy and a dynamic business scene, so it's unsurprising that in recent years, it has become a magnet for home buyers across the US. Although the Texas Hill Country is typically known for its affordability, the housing market in the state is experiencing a period of transition. The market is showing signs of prices on new homes for sale in Georgetown and other Texas areas rising. So, too, is the cost of land.
However, the market is demonstrating resilience, and there will be a gradual improvement in 2024, so pricing-wise, it’s not all doom and gloom. Is now a good time to buy land in Central Texas to build? In this blog, the team at J. Bryant Boyd has answered this question by detailing the current market trends and rates.
We have also discussed the economic forecast for home buyers interested in Hill Country land for sale and how to navigate the high-priced land market. This information should help you make an informed decision, and we’re here to help you achieve your land-buying aspirations.
The Texas Hill Country and all of Central Texas is known for its incredibly beautiful landscapes and proximity to urban centers like San Antonio and Austin. This makes it a desirable location for potential homeowners who want the peace and tranquility of the rural hill country but the proximity to modern conveniences and amenities.
Since the region is becoming more popular, it should be no surprise that current market trends in the last two to three years indicate that Texas Hill Country and statewide have seen average land prices increase by 25% to 35%. According to the latest statistics on land pricing evaluations, it is believed that prices for land per acre can easily exceed $15,000, especially for high-end ranch and estate properties in the Texas Hill Country. If you are wanting a single acre, you might be looking at $100,000.00 or more in the more desirable areas.
The increase in land prices is primarily driven by the influx of investors and retirees looking for recreational land alongside the increased demand for rural properties. Ultimately, the Texas Hill Country will remain a hotspot, and experts predict land prices will continue to rise at a more moderate rate of 2% to 4% annually, making it an area worth investing in.
This means that it is now more important than ever to decide whether this region is where you want to buy land and build a home in the Texas Hill Country with the help of a reputable design-build company like J. Bryant Boyd.
In Texas, the economic forecast plays a more significant role in shaping land purchasing decisions than you might believe. Since the Texas economy remains strong and is supported by a robust labor market and ongoing population growth, the state will continue to have a demand for Hill Country real estate. This includes a demand for land in desirable areas like Georgetown and other vibrant communities in the Texas Hill Country.
However, this doesn’t mean that there are factors influencing the sale of land that could impact your decision to buy in this region. For example, rising interest rates are a significant consideration. In addition, rising mortgage rates, which are predicted to continue climbing based on Federal Reserve rate hikes, are another important factor influencing buyer decisions.
Unfortunately, the rise in borrowing costs can also impact the affordability of some land buyers, which could slow demand in certain arenas. Luckily, although these economic factors are impactful, the Texas Hill Country’s appeal and the relative scarcity of available land make buying now a strategic move before rates climb higher.
Buying land in the Texas Hill Country presents unique challenges. However, it's also clear that purchasing land is always a solid and safe investment and that there is a healthy demand for land and property in Texas despite the market and its challenges. To understand the process further, check out the costs associated with building a custom home on this blog.
So, if you decide to buy land in the Texas Hill Country, now would be a good time. You can speak with us at J. Bryant Boyd about your Texas Hill Country house plans and needs. We are the Central Texas custom home builders with decades of experience helping home buyers secure a wise long-term investment by sifting through Hill Country lots for sale.