As fall sets in, glimmers of light are beginning to appear in certain real estate markets served by MacRo, Ltd.
Our activity level in the area of land and farm sales has increased substantially during September – qualified buyers are actively searching for property and many sellers have adjusted to the realities of the current market. This combination of factors may indicate that this market has hit bottom and is transitioning into the recovery phase of the cycle.
On the demand side, many prospective buyers realize that now really is a great time to buy: prices are greatly reduced and interest rates are at their lowest point in a generation. For the first time in several years home builders are inquiring about projects in anticipation of the residential market strengthening.
On the supply side many property owners have come to the conclusion that the halcyon days of 2006 won’t be returning anytime soon. It’s likely that prices will remain flat or rise moderately for many years to come and it may be a decade or longer before prices rise significantly. While some property owners are content to hold out for the “next big run” which may be 10 to 20 years away, many have adjusted their asking prices down to levels that are necessary to stimulate activity.
While predicting the future is a fool’s game, the cyclical nature of real estate is impossible to deny. The downturn experienced over the past several years WILL bottom out, the amount of market activity WILL increase and eventually prices WILL rise again.
Rocky Mackintosh and I have experienced many recessions and recoveries, peaks and troughs during our long careers in real estate. Our experience helps us customize our services to help you attain your real estate goals based on your own unique circumstances and desires. Our specialties include brokerage of land, farms and commercial property as well as subdivision and development management. Please give us a call if we can assist you in any way.
David Wilkinson has been a licensed Realtor and Vice President of MacRo, Ltd. since 1992. He specializes in commercial property and rural land sales. He also real estate consulting services for subdivision and development land.
Click here to download a PDF version of the MacRo Report Fall 2010 Edition.