2024 Land Real Estate Survey: Land Values Expected to Stabilize, Seen as Investment Opportunity

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2024 Land Real Estate Survey: Land Values Expected to Stabilize, Seen as Investment Opportunity

Ronnie Richardson

Greenville, SC – National Land Propertiesa national real estate brokerage firm specializing in farm, ranch, cottage, timber, recreational and commercial properties released its 4th annual Real Estate Agents and Brokers Survey (n=120).

Key findings include that 2023 was a year of significant property value appreciation in many markets, but many real estate agents see 2024 as a year in which values ​​stabilize. Brokers are optimistic that investors will take advantage of the opportunities presented by this cooling market. Additionally, agents find proptech extremely helpful in raising awareness, generating leads, and setting asking prices.

For the fourth year in a row, National Land Realty surveyed its agents and brokers about their assessment of the past year and their expectations for the coming year.

National Land Realty agents are looking forward to 2024 being another busy year as buyers take advantage of opportunities presented by stagnant land values. 18.49% of agents say they are very optimistic about the new year, and 45.38% say they are “somewhat optimistic.”

How optimistic are you about the performance of the real estate industry over the next 12 to 18 months? (n=119)

Answer

percentage

Very optimistic

18.49%

A bit optimistic

45.38%

Neutral

23.53%

A bit pessimistic

12.61%

Very pessimistic

0.00%

Optimism is particularly prevalent in Texas, where exactly a third of agents surveyed said they were “very optimistic” about what 2024 has in store for them (another third were “somewhat optimistic”). Texas is expected to remain one of the hottest real estate markets in the country in 2024 due to its growing base of technology companies and low corporate taxes.

For 2023, 14.29% of agents report that the value of properties in their market increased by 0.1% to 0.5%, 14.95% reported that the value increased by 5.1% to 10% increased, and 20.95% recorded an increase in value of 20.95%.

These numbers differ significantly from brokers’ expectations for 2024. For the new year, 35.85% of brokers expect prices to stabilize (“no change”). Only 23.58% of agents assume that the property will increase or lose value by more than 5 percent. A significant group of brokers (10.38%) say they do not know whether the floor will increase or decrease in value in the new year.

How much appreciation or depreciation do you expect in 2024 for the primary property type you specialize in? (n=106)

Answer

percentage

Increase of more than 10%

2.83%

Increase of 5.1% – 10%

6.60%

Increase by 0.1% – 5%

17.92%

No change

35.85%

Decline of 0.1% – 5%

12.26%

Decline of 5.1% – 10%

12.26%

Decline of more than 10%

1.89%

I don’t know

10.38%

“It is clear that agents expect property values ​​to stabilize in the new year. Agents are optimistic that a temporary slowdown in appreciation will entice potential buyers to push up the purchase price, and I think they’re right,” says Ronnie Richardson, CEO of National Land Realty.

As was the case last year, the agents were also asked about their appreciation for proptech.

Brokers consider increasing awareness of their business (49.48%), generating leads to potential customers (49.48%) and setting the right listing price (46.39%) as three tasks that proptech helps them accomplish the most can provide benefits.

Which three tasks do you think PropTech could provide the greatest support for? (n=97)

Answer

percentage

Increase the awareness of my company

49.48%

Creating leads with potential customers

49.48%

Determination of the correct list price

46.39%

Nurturing leads from potential customers

38.14%

Educating customers about buying and selling properties

30.93%

Sale of property within the planned time frame

27.84%

Building relationships with other professionals in the industry

7.22%

Completion of the transaction

6.19%

Obtain timely reports

5.15%

“I think we can rightly say that we are the most technically equipped real estate agency in the country. Our agents expect proptech to be used for awareness and lead generation. With applications like Land Tour 360®, LandBase™, Land 1031 and our new online auction platform, we are addressing this need and our agents and customers can expect us to continue to innovate in the years to come,” says Richardson.

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