Land Sales on the Rise
While the existing home sales market is beginning to show signs of life, vacant land sales are starting to boom. The truth is, land has been the key all along. Even when home prices were leapfrogging their way to the stratosphere, it wasn’t the structures that were increasing in value, it was the lots and land those structures sat on. Why land? The old saying is true: Land is valuable because they aren’t making any more of it.
Builders are back up on the horses that threw them and have began buying land again. With land prices low, competition for vacant lots and land has increased and now land prices have started going up. From a builder’s perspective, the future is looking bright and now is the time to invest. In parts of Southern California, where prices were hit hard, some construction-ready lots are up in price by as much as 50% from their 2009 lows, according to a Bloomberg analysis.