Land Prices

DeerCamp

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I think most of that 30,000,000 walked across the southern border since 2007.
This is actually a half truth.
Without immigration, the U.S. population will decline back to below 320M by 2060.

Birth rates are lower than death rates in many states in the U.S.
 

Boll Weevil

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For some odd reason, big chunks of land still aren't selling that well in my area.
True. And I think part of it is not everyone's holding several hundred thousand bucks in their hip pocket. With interest rates creeping up, lenders are a bit less keen on loaning big dollars without a significant down payment or collateral.
 

DaveTN

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The land prices in Tennessee are being impacted by people fleeing the metro areas and from other states. The technology advances that allow some jobs to be done from home also impacts those moves. Unlike houses, the market can't be flooded with new product. Whatever people are willing to pay will obviously be the value of the land.

Land prices probably won't drop much, but house prices probably will as new construction ramps up in rural areas. Right now would be a great time to sell. Unless of course you had to buy in the same market. :)
 

AT Hiker

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Paid 1100 an acre for mine and sold it for 3000 an acre 7 years later. If that isn’t an investment I don’t know what is. I don’t see land prices coming down in the future.
That’s a good return for sure plus you got to recreate on it, about a linear 9.5% per year.
However, you also have to subtract your cost from that. Taxes, insurance, realtor fees, etc.
I just cannot make myself invest directly into real estate. For one, I could never sale it to anyone outside of close family. I’d be a land hoarder and broke.
 

TNTreeman

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I met a man about 25 yrs ago that was worth about half a billion dollars . He had no real stock portfolio but owned every kind of property there is. Beach houses, river houses, raw land, rentals , you name it. I was in my early twenties and just trying to learn . I remember him saying he and his family have fun with all his investments, you can’t go visit stocks he said. Definitely not knocking the stock market at all, I just really like real estate. I’m just starting to look for more land now bc it’s showing signs of slowing down and staying on the market longer, some have even lowered prices.
 

FLTENNHUNTER1

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That’s a good return for sure plus you got to recreate on it, about a linear 9.5% per year.
However, you also have to subtract your cost from that. Taxes, insurance, realtor fees, etc.
I just cannot make myself invest directly into real estate. For one, I could never sale it to anyone outside of close family. I’d be a land hoarder and broke.
I used it as an investment strategy of being diversified.
 

FLTENNHUNTER1

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That’s a good return for sure plus you got to recreate on it, about a linear 9.5% per year.
However, you also have to subtract your cost from that. Taxes, insurance, realtor fees, etc.
I just cannot make myself invest directly into real estate. For one, I could never sale it to anyone outside of close family. I’d be a land hoarder and broke.
That was after realtor fees. Taxes were 5-600 per year IIRC; so minus 4200. Wasn’t insured.

But you have to add 28 deer and multiple turkeys. 50 pounds (or more) of meat each times 28 = 1400 pounds. That’s 16-20k worth of meat if not more. Plus I had the timber appraised twice over 7 years. Estimated at 30-50k. Never had it select cut so that was potential profit.

I wouldn’t invest in land only, but diversification is important.

Plus I got lucky…
 

killingtime 41

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Reason besides people from big cities in California or up north who would love to think they’re a farmer soon as they move here. Only to buying every animal known to man and giving them all away a year later. Is big corporations and these real estate stock that anyone can buy into.They are usually big corporations with unlimited amount of somebody else’s money. But they will eventually lose. Those same company’s have bought up most of the houses. Being the biggest landlords as of late. Individuals like usual are being priced out by investment groups and large corporations. Using the billions of dollars given to them during Covid. Pricing out the common person or family trying to own anything. Thank you once again U.S government. Bubble has got to pop at some point. Everything is so inflated in price you can only inflate so much till something pops. We will see what happens
 

DMD

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I haven't read all the comments on this thread, but I believe there will be a correction to the market at some point. So many people have overspent on property and homes. Many will find themselves underwater. Inflation is going to speed that up (unfortunately). People won't be able to afford the huge payments they've entered into. Property values will drop. The one wildcard in that scenario is all the people from up north that are moving in. We are seeing a huge influx in our county. They will pay whatever - it's still way cheaper than they are used to paying where they are from. But, I still believe there will be some correction. Prices are way over inflated right now.
 

BSK

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Home sales have taken a very sudden and dramatic turn downwards in the Nashville market. What was a red-hot market two months ago is down to a trickle. Most homes were selling the week they went on the market and way over asking price. Now homes are sitting without offers.
 

megalomaniac

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It won't take much for undeveloped land values to plummet....

Think about it... if I were a tax and spend politician, wanted to tax the crap out of those who don't vote for me anyways... well, I'd tax the crap out of land. At some point land taxes can become so high your property is actually depreciating in value compared to other less taxed investments. If that ever happens, you will see a mass exodus from land holdings...

Which is fine with me... may even be good to pick up land cheap... as long as you can afford the taxes to hold it.
 

Ski

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I'm not sure about all the optimism about land prices dropping. Has anybody ever seen it happen, or know of it ever happening in America's history? Sure prices plateau, sometimes for many year stretches, but they don't drop.
 

Bgoodman30

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Home sales have taken a very sudden and dramatic turn downwards in the Nashville market. What was a red-hot market two months ago is down to a trickle. Most homes were selling the week they went on the market and way over asking price. Now homes are sitting without offers.

Only the ones that were listed way too high..
 

Bgoodman30

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They won't as long as firms like Mcewen keep doing their fancy videos and selling farms for ridiculous prices to Californians and other suckers... :cool:

But seriously its slowed way down a lot of these overpriced farms and homes aren't selling and are quietly being reduced..
 

BSK

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I'm not sure about all the optimism about land prices dropping. Has anybody ever seen it happen, or know of it ever happening in America's history? Sure prices plateau, sometimes for many year stretches, but they don't drop.
I have watched land prices in Humphreys County ebb and flow over the last 35 years. I've seen them rise to $2,500/acre and then fall back to $1,200/acre. Even recently watched large tracts of land fall to $750/acre and not sell for over a year.
 

SuperJ

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Price equals demand. People are fleeing their overpriced state driving up the price. Prices will come down when this stops. Who knows when or how much?
 

DaveTN

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Sure, the price of a house will fluctuate greatly, but land will probably hold. Foreign interests are also buying up land. The stock market crash of 2008 dropped the average farmland price in Tennessee a little (-5%). It took five years to recover.

Tennessee Farmland went from an average of $2120 in 2000 to $3990 in 2020. That about 3% a year. That's a secure investment but not really the increase most would be looking for in investments.

Of course none of that applies to a tract of land a builder is trying to buy near a city. ;)
 

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