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Why would the sale of lots be a sign of a shifting market?

Why would having 5 lot sales shake the market a bit? When a market goes south, the first to slow and then come to a complete halt is lot sales.  At this point, in our market, it makes zero financial sense to buy a lot and build on it; as, I can could give you a $200,000 lot for free for you to build on, and I could still find a comparable house that is about a year old that is substantially cheaper than the construction costs alone.  Thus, that is why lot sales go to zero.In my farm area, there are bit over 100 lots that are on the market, some on the MLS and some not.  In the past 9 months, there have been zero sales.  In the past 4 weeks there have been 5 contracts with 4 closings.....with prices from $100k to $1.7mm.  Thus,  there are 5 people who could care less about the financial decision as they want to build what they want despite that fact that it does not make financial sense whatsoever.This is usually a major sign that there is a new shift in the market; or, it could be merely a fluke.  The ... more

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