Market Pulse - Central Texas Ranch Market - Q2 2024

Broker’s Remarks

Overall, the second quarter saw a positive trend in transaction numbers in Central Texas. It was hard to gauge the market trend in real-time. It fluctuated from busy to slow, with little in between.?

After reviewing the data, I have gained some clarity on why that might have been the case. First was the time on the market; almost half of the second-quarter sales had an active time on the market of less than 3.5 months, which is short in our world. Second, the mean sale price vs. the original list price was 89% for the West and 85% for the East.

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After understanding the data and talking with other brokers, I noticed that some buyers have been searching for specific properties for quite some time due to the lack of options while also surveying which direction the ranch market is heading. The Q2 data shows that when the right place comes on the market that fits what a buyer is looking for, they move quickly, and the mean sales price vs. original price shows that sellers are willing to negotiate fair prices.

On the flip side, many buyers entered the market during the 2021-2022 run; if properties are sitting like many are, it may mean the buyer is not out there right now, or the price is hard to pencil out with the data. These reasons may be why some properties move quickly while others sit without inquiries or showing activity.

The more I reflect on the rhythms of activity and data trends from this year, the more this feels similar to the market before the land rush of 2021-2022. If this is true, showing activity will pick back up in the mid-third quarter as it has historically; deals will be made in the third quarter, leading to positive sales trends in the fourth quarter.

Market Navigation

My advice is nearly the same as in the first quarter report, with some additional takeaways we learned from Q2.?

Sellers interested in entering the market should study recent sales data and price within the appropriate delta. Correct pricing out of chut will benefit you much more than a series of price reductions throughout the year; I have repeatedly seen that strategy have less success, especially with the data and resources that are available to buyers today. Based on what we learned in the second quarter, review your price and showing activity after three months. Adjust your strategy if your buyer has yet to come to the table by then.

Conversely, for buyers, if the right property presents itself, buyers should attempt to negotiate, leveraging market data to justify their opening offer; many sellers have exhibited a willingness to negotiate fair prices.?