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REAL ESTATE DEATH SPIN

By
Services for Real Estate Pros with Midamerica Referral Network

 SALES DOWN.....LAND PRICE UP?

 

If we in the real estate business are supposed to be in such a death spin,  why are prices on land going up?  Almost daily the media is reporting our supposed loses's and solemnly (do you notice the commentator's voice dropping to an almost  funeral directors  tone )declare the newest bad news.

I am in the midst of searching for land/lots for a Maryland buyer coming in next week (an AR lead by the way).  They think their eastern home will be selling for about $600,00, I'm told, so they are looking at upscale real estate in the Ozarks. 

Lake Homes

Our cost of living and taxes  around Table Rock Lake are modest compared to many locations around the country, which is why we are now drawing potential residents here as they plan for retirement and fixed incomes.  In my town, Shell Knob, the average house last year sold for about $200,000.

The new developments are selling waterfront property for $150,000 and up just for the lot, plus another $15,000 to $25,000 for a boat slip. I am hard pressed to find appealing offerings that are also affordable.  Two years ago you could buy in a nice development on the water for $45,000/lot.

Today I picked up a plat for the newest waterfront community in my town.  Out of 96 lots, 33 of them were over $100,00, five were right at $200,000, so tell me again about the outlook for sales? 

I know, development costs are up, materials increase daily, etc.  I noticed that even the price of milk has jumped, but how much can we blame on rising gas prices and those 'rich oil men' sterotype?

My answer for this particular client I'm working for, is to take them a little further out than we had planned.  They may have to drive a bit longer to get the perfect homesite.  A few miles on down the road, land is still selling for more reasonable prices.  

What is it the kids say........ go figure?

 

I'd love to see what you have to say about this. 

Comments(4)

David Doerr
David Doerr Mortgage Team @ Axia Home Loans - Spanish Fork, UT
14 Year Mortgage Professional
Reports of the demise of the real estate industry have been greatly exagerated!
May 05, 2007 09:16 AM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Hi there!  Nice to see somebody else from Missouri on here!  I personally think that it's all about news cycles.  Reports are busy and basically lazy.  If a article or a report gets a lot of intention they will keep writing about that topic until the reading or viewing public tires of it.  They they move on to something else.  

I'm thinking that the whole, real estate bubble bursting thing has just about ran it's course!

 

Bob Mitchell

ValueList 

May 05, 2007 09:33 AM
Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO
David - I certainly agree, but our listings are stagnant, walk-ins are rare, and the phones are not bz.....still new developments are started and prices for lots go out of sight!
May 05, 2007 04:12 PM
Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO

Bob:

I'm with you on the lazy drive-by media.  Let's hope they get bored with reporting the same old same old. 

May 05, 2007 04:13 PM