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.
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.
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