While the real estate market experienced an “enhanced” cycle over the past ten years, the lot and land sub-sector has been subject to even greater volatility – like a business cycle on steroids.
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At the turn of the millennium, the median price of a custom home lot was around $70,000 and sales volume was about 40 lots per year. Over the next six years a shortage of custom home lots developed and prices shot up: the median price peaked at over $250,000 in 2006. Prices reached an unsustainable level, and sales dropped. Then in 2008 the economy crashed and custom lot sales plummeted – falling below 10 lots per year.
The good news is that since the trough of 2008, sales have increased every year, albeit at a modest rate. While MacRo, Ltd. is not expecting a rapid run up in prices anytime soon, it is encouraging to see prices stabilizing and the number of transactions increasing as is typical in a period of recovery.
If you’re in the market to sell or purchase lots, land or farms, please give me a call. I’d be honored to assist you in your evaluation and help you achieve your goals.