A 10 minute scan of some of the real estate blogs I follow produced the following snippets, all showing positive trends for rural land:
“With all the foreclosures and short sales being bought up I have noticed that some investors are buying up raw land, if this trend continues we could go from bust to boom in a lot less time than was forecast. We are in uncharted territory for real estate.”
“After no land inquiries in the last five years, we’ve had four people contact us recently asking about land. Very interesting.”
“The average price of a Texas acre rose to $2,150 in 2011, up 3 percent over the previous year, according to the Real Estate Center at Texas A&M University.”
“High commodity prices could be driving up rents farmers pay for land. Farmers in some areas of Louisiana seeing land rents increase dramatically.”
“Buying land in Florida is considered a low risk/high return investment”, says Matthew Lavin, Senior Property Consultant at Knight Knox International. “Buyers wanting to capitalize on low market conditions can afford to buy land now . . . “
After four years of price declines for rural Alabama land, we continue to see signs in many markets that buyers are beginning to look at rural land again. With loan rates at historic lows (I was quoted 4.29% fixed for five years this week by one rural land lender), the opportunity to own rural land seems even more sensible.