Rural Land Values in the Southwest: Second Half, 1997 Page: ATTACHMENT
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Arizona
Noting an increase in both the numbers of
properties for sale and the numbers of proper-
ties sold, Arizona panelists anticipate a continu-
ation of the strong 1997 farm and ranch mar-
kets in 1998. Winter rains have prompted
farmers to anticipate good growing conditions,
although low cotton prices caused many to
shift to alternative crops. The panel predicts a 5
percent rise in both irrigated farmland and
rangeland prices by the fall of 1998. Prospects
in the urban fringe market appear even
brighter at a forecast 10 percent increase by fall
1998.
Producers continued active purchasing in the
Arizona market, according to 43 percent of the
responding panel, while an equal number saw
investors dominating their markets in the fall
of 1997. Investment and purchase of rural
homesites led most buyers to the Arizona land
market in the fall of 1997. On the selling side,
43 percent of responding Arizona observers
saw sellers cashing in on the strong prices
prevailing in the market. Financial stress (43
percent) and estate settlement (14 percent)
motivated sellers, according to the panel.
Observers contributed the following informa-
tion about the Arizona market.
" Irrigated cropland:
a median value of $1,375 per acre
typical sold property size of 320 acreshighest regional median price of $6,250
per acre in land market area (LMA) 3
(see Appendix B)
lowest regional median price of $500
per acre in LMA 4
a forecast 5 percent increase in values
by fall of 1998
" Native rangeland:
a median of $150 per acre value
typical sold property size of 12,250 acres
highest regional median price of $750
per acre in LMA 4
lowest regional median price of $30 per
acre in LMA 2
" a forecast 5 percent increase in values
by fall of 1998.
The Arizona panel contributed seven obser-
vations on current land markets.
Commentary
The following comments contributed by
Arizona panelists provide insight into local land
market developments.
"Because Arizona ranches include public
domain lands, both state and federal,
environmental regulation and law suits
related thereto have become a factor in
this market. It has not yet affected the
market, with the exception of U.S. ForestSummary
Land markets in the second half of 1997 continued the robust level of activity
posted in the first half of the year and in 1996. Throughout the Southwest,
landmarket observers lamented the scarcity of land for sale. The continued eco-
nomic boom fueled demand, boosting prices along a broad front. The future
appears bright for nearly all types of rural land, with the possible exception of
cropland. Uncertainty surrounding cessation of federal government payments and
the ensuing free-market competition may cause cropland buyers to hesitate.
Despite the uncertainty, land prices should not recede within the next year.
Reflecting local conditions, regional land markets varied in both price and pro-
jections for the future. The following report examines how the panel viewed these
local influences on land markets.
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Gilliland, Charles E. & Semien, Anthony. Rural Land Values in the Southwest: Second Half, 1997, report, July 1998; College Station, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1586957/m1/5/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.