Will land prices fall?

[miket]

I dont know, sure wish they would. Prices now are beyond all logic. 10ac next to me is for sale for $425k. This is rural grimes county, the property was for listed at $265k just a couple of years ago.

[txhoghunter2]

Demand for raw land in this area is still strong. Of course there are sellers who price way above market and it doesn’t move, just like housing. As far as interest rates being high, there are still a lot of cash buyers out there.

[The4Cs]

I dont know, sure wish they would. Prices now are beyond all logic. 10ac next to me is for sale for $425k. This is rural grimes county, the property was for listed at $265k just a couple of years ago.

I don’t think they’ll “drop” as a whole. I think some of the “outrageous” pricing like $42,500.00 an acre for rural property will level back out to “actual values”. But I think people with money who are pulling it out of other markets will invest in land now which will hold the market at existing levels. Unless we have an all out “crash” which wouldn’t surprise me with the morons we have “steering” the country these days!


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[flywise]

Not unless we have a depression, so hoping no.

HAving a collapse would probably be the best thing for us. Painful for sure but necessary. There has not been any suffering in 100 years.

[tdwinklr]

HAving a collapse would probably be the best thing for us. Painful for sure but necessary. There has not been any suffering in 100 years.

Agreed, is the only thing that stops this nonsense. Except let me sell my place for 3x what its worth first.

[BBBGP]

Fall ...no. Slow down some ....yes.

[Johnny44]

I saw a UPS truck on the road to hell (flint bolders) that crossed three creek crossings yesterday. I bet more folk will keep moving out of town.

[BLee15]

Idk how people are affording 500k houses with 7% interest rate. I’m sure rates on land are even higher. I think land will come down some but agree nothing close to what it was 4-5 years ago.

[jdg13]

Idk how people are affording 500k houses with 7% interest rate. I’m sure rates on land are even higher. I think land will come down some but agree nothing close to what it was 4-5 years ago.

The way they always "afford" it. Massive debt and living paycheck to paycheck. Once the inflation really starts to hurt and the markets keep dropping you'll see more foreclosures and more "good deals" from people trying to get out from under water. Prices will go down a little but never go back to what the once were. Reason being as soon as things look better the buyers flock back, plenty of which didn't learn their lesson and start overpaying again. Unless we have a severe market crash, the cycle will always continue.

[Graysonhogs]

Only thing falling is the buying power of the dollar.

[Bill M]

These are always to be answered, "maybe a little". These situations are always dependent on locale. Markets are different everywhere. BCS housing is still a sellers market primarily due to lack of inventory. Some sales are coming below asking now but many are still at asking or if prime property, still above. This will vary from region to region. Most land sales are as mentioned above, owners attempting to take advantage of an inflated market. I would say most aren't in need of selling. If someone is in distress, then you would likely see lower pricing. Those calling for complete collapse to correct things are not really wanting that, you wouldn't like it.

[Barney1971]

i doubt it... a good friend of mine and i often have the old discussion about
" i could have bought that piece of property for ... X amount 10 years ago..."

... and now look at it. dang it! and when land comes up for sale its always
"i cant believe it went for that"

[kumathebear]

There are so many variables in land purchasing and selling, but it will depend on what area you are seeking to buy? I talked to my land manager I retired from several years ago and he said their projects have slowed some mostly due to interest rates. I used to sell improved acreage from 1-20 acres and we sold out for the most part in a grand opening weekend. I also listed and sold much larger properties and both locations were in the west DFW area and south to Hamilton, Glen Rose. From my experience, larger properties had "wiggle room," smaller not so much.

So, I believe it will depend on rates but much more on location. Right now our area around Hood, Parker, etc. counties is still very hot and in demand and should continue to be so. Only places I see pretty significant price reductions are locations like Rock Springs and such.

[Throwin Darts]

Are you buying with all cash? If not, land prices can fall and you'll still end up paying more with where rates are heading.

[Throwin Darts]

HAving a collapse would probably be the best thing for us. Painful for sure but necessary. There has not been any suffering in 100 years.

2008 was not 100 years ago