Quarterly Snapshot 3Q23 | Land | Land Market Remains Durable Even with Some Fall Off
The Houston land market was robust in 3Q23 as developers continued to sell sites for master planned communities and commercial development, while speculative land investors kept buying well-placed, large, strategic land tracts. Single-family home sales across the market fell by 10.9% in September 2023 with 6,886 units sold compared to 7,728 units sold in September 2022. Continued market pressure from high interest rates artificially suppresses home sales, and is putting significantly more pressure on commercial real estate transactions for buyers using traditional financing sources. As we head into 4Q23, we expect land sales to continue primarily for residential development with less land trading for commercial development.