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Kelley’s Market Trends: Land Market Distribution

Largest portion of the land market is made up of tracts smaller than 10 acres

By Jim Kelley

This week’s graph shows the distribution of current land listings and the last 12 months of sales by lot size. Of the 481 land  sales in 2016, small urban lots accounted for 27 percent of the sales, compared to 31.4 percent in 2015. At this time there are 1,099 land listings and  25 percent  are less than a half acre, compared to 25.6 percent  at this time a year ago. With 125 sales in this size range and a current inventory of 238 listing, this means that there is currently 22 months of inventory.     

As we move up into the 1.1- to 3-acre category, we find that this size category accounts for 20 percent  of the sales and  16 percent  of the current listings.      

The largest portion of the land market is made up of tracts of land that are smaller than 10 acres with 77 percent of the listing and 84 percent of the 2016 sales being of tracts smaller than 10 acres.

Tracts of land that are under 20 acres have a current absorption time that ranges between 18 and 22 months. Larger tracts sell at a much slower pace and will take much longer to be absorbed into the market.