With the second quarter of 2018 in the books. We can look back and see that commercial land sales are trending to be the highest in the market-area since 2014 both in terms of total acres sold and number of transactions. Home builders and private developers continue to comprise the majority of buyers for large land tracts as development continues to move further north along the I-45 corridor. Average time on the market has remained steady at 8-10 months for undeveloped land tracts. Sales-cycles are even shorter for pad-sites and construction ready properties. Average sales price per acre was down in Q2 from approximately $150,000/ acre to $65,000/ acre. This was likely due to an increase in large undeveloped properties closing.
Land prices and development activities are corresponding and contingent upon the availability of utilities (water & sewer), the City of Conroe has helped further attract developers to the remaining raw land in the area by permitting the establishment of in-City MUD Districts. The City of Conroe is also raising water and sewer rates to fund plans for key infrastructure projects to accommodate anticipated growth. With the Lake Conroe area population expected to grow from 180,000 residents in 2018 to 485,300 residents in 2050, we can expect the demand for commercial land tracts to grow and sales to increase as buyers prepare to meet growing business demands in the market.
Activity has continued to increase this year and the future of the land market in The Woodlands area looks to remain strong as we progress into the 3rd quarter of 2018.
Presented by: Ryan Hutson & Chase Moore of the J. Beard Real Estate Company