I was reading an article by an economist and it gave me the motivation to pen this post. I recently attended a meeting of ‘Land Brokers’ and everyone is asking… Have we returned to normal? What is normal? Will prices return to pre-2008 levels?
We have probably not seen a normal market since 2006-2007. Well the bubble popped in 2008, prices fell off the cliff in 2008 and 2009 and we have been waiting for over 6 years for things to return. In some areas things have gotten a lot better i.e. row crop land and irrigated land in the mid-west. Some of the other areas are struggling and in west central Georgia prices have not moved much in 4-5 years.
So what is going on??? Our economy is so tied to other factors such as gas and energy prices, national debt at all-time high, recession in Japan, terrorism, imports, exports etc. In some way we have little control on what happens outside our borders and this has impacted the ‘land market’.
Although there has been some recovery since 2010, there are very few land sales taking place. The "new normal" has been sporadic surges with different durations in time , and different peaks in intensity or price. My prediction is this trend will continue for some time..... So if you are waiting for things to return to normal…maybe they already have!
If you are a Seller should you wait? Maybe the opportunity cost of waiting is not worth the risk. Maybe that cash can be used for other purposes.
If you are a Buyer, it is a good time to purchase. Prices are still relatively low and interest rates are favorable. A really good tract is always a good investment. Some properties have the ability to generate intermediate cash flow from farm rents, timber harvest, hunting leases and more.
There are some good properties out there, be selective and you will look like a hero later on!!
To view my listings, go to AllSouthLandandHomes.com Selling or Buying LAND? contact G. Kent Morris, ALC, RF @ 706.457.0090