Will land prices fall?

[Horsefly]

If I understand that the housing market has peaked in pricing and is on the decline relatively, does land / rural properties track this decline or follow or none of the above? I’m in the market to buy property but I can be patient and wait if trends suggest it would be better to wait.

[bbbuck]

Land prices are sky high right now. Land prices tend to rise steadily over time however will fall with disasters or recessions. If you can time a fall, that’s the best time to buy.

[PondPopper]

Odds are NO..... They haven't in my lifetime.

[bossbowman]

Not unless we have a depression, so hoping no.

[SmTx]

People kept to cities for jobs. Now we have WFH. Being close to stores was nice. Now we have 2 day shipping to anywhere in the US.

I wouldn't hold my breath on land prices coming down.

[sboudreaux]

They will moderate but not fall with the exception of some submarkets in my opinion.

[D u s t y]

I wouldn’t say crash but yes I would expect them to pull back. You can’t have record pricing and high rates at the same time and expect the world to keep accelerating. Something has to give at some point

[RiverRat1]

I wouldn’t say crash but yes I would expect them to pull back. You can’t have record pricing and high rates at the same time and expect the world to keep accelerating. Something has to give at some point

This. It's not rocket science.

Properties are already staying listed a lot longer. Many people are now priced out with interest rates way up over the last year.

And rates should be going up even more.

I'm not saying land prices will tank hard but they are already going down some.

[trophy8]

House prices have dropped significantly over the last year. Buyers market now. It seems they are leveling off. At least in central Tx. Land isn’t moving like it was either.

[KactusKiller]

Land is stabilizing and possibly fallen some in the larger tracts but smaller say 20-80ac is still pretty hot. Properties are starting to stay on market longer and the longer they do the lower prices will become especially if we start to get into a recession. But like all things it will go back up. And you only realize a loss of value if you liquidate that asset.

[tradslam]

When interest rates hit 10% I’m guessing there will be some dropping.

[Bard]

You have negotiating power right now that you did not have just months ago. When someone sits on a piece of land/home for sale long enough, which has started in many places then the price has come down. Realtors aren't necessarily going to drop prices but you as the buyer hold power in your hand/checkbook to negotiate more.

[casandramue]

In general, the price of land and rural properties tends to be less volatile and slower to change compared to the housing market. This is because land is a finite resource and its supply is limited, while demand for land can remain relatively stable even if the housing market experiences fluctuations.

However, there can still be some correlation between the housing market and land prices, particularly in areas where urban sprawl is occurring and there is high demand for land for development. In these cases, land prices may rise in tandem with housing prices, and may be more affected by housing market trends.

[Cosar87]

I think they’ll level out or drop some, but it really depends on how comfortable some people are with holding their property. I’ve heard that there are two types of sellers: those that need to sell and those that will sell if they get right price. The first group will drive prices lower if they don’t get buyers due to higher interest rates.

[RJK70]

Some of this is true but I expect less people will list properties for sale now. This will cut supply of available properties. People will only sell out of necessity now when before they were selling to get in on the hot market.

Where my property is I doubt there will be any decline but just a leveling off. It was crazy how much prices were rising month to month. And I don’t see any way prices will go down to where I bought at just a couple years ago. Businesses and people are still doing very well. For the most part people buying land for an investment or second property are not effected by things like inflation.

This won’t be my problem any way. I plan to pass it on to my young kids one day or flip it for another place down the road.


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