insane land prices

Bszweda

5 year old buck +
Has anyone else noticed the prices in their area for land has gone sky high?( really within the last 6 months) Do you think prices are only going to continue to trend upwards or do you think higher interest rates will bring the prices back into check?
 
Prices keep going up if people keep paying the asking price. People have the power to drive down costs on everything but just can't seem to stick together enough to do any good. jmo.
 
Try to build something now with the ungodly high prices of building materials. A 300k dollar house will cost you a million dollars right now to build.
 
Insane land prices, insane house prices, insane farming implement prices.. etc.

I wish I knew, then again if I did, I'd be filthy rich off the stock market and wouldn't spend near the time on HT :emoji_grin:
 
I think it'll get worse (depends on your perspective)....before it gets "back in line." Land is always expensive to buy and even more expensive to hold. Some people can get rich speculating and many get poor. Good / bad luck? Fortunate / unfortunate timing? I dunno. A lot of things other than interest rates influence the price of land. What's on it now. What it can be used for in the future. Commodities are crazy. We talk about high lumber prices, but for kicks and giggles look at old crop / new crop corn and soybean prices. The old saw is, "The cure for high prices is high prices." Land prices haven't heard that one yet.
 
I’m hoping it’ll crash at some point so I can get back into the game. We’re buying an existing house instead of building as material prices made it untenable to build. Still have a 2 acre piece of land sitting there that I can liquidate or save to shoot on and potentially build later. 60k+ in equity sitting there is a good chunk, could be 2/3 of the way to paying off my current farm. Decisions, decisions. Everyone be smart about this stuff, put 15% into index funds first and then the rest is play money.


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Other than just straight row-crop land that is probably more volatile, land prices don't ever seem to go down in value. I have been trying to buy a few pieces around our current land and it has been brutal.

A few investment groups around us have been buying and holding for exactly 12 months and flipping the land. I am sure someone more involved in real-estate can answer this officially, but I suspect that the speed at which lands are changing hands probably only means the land prices are going up. Unless there is a significant drop in grain and beef prices, the land around here is not going down in value for years (if ever).
 
Other than just straight row-crop land that is probably more volatile, land prices don't ever seem to go down in value. I have been trying to buy a few pieces around our current land and it has been brutal.

A few investment groups around us have been buying and holding for exactly 12 months and flipping the land. I am sure someone more involved in real-estate can answer this officially, but I suspect that the speed at which lands are changing hands probably only means the land prices are going up. Unless there is a significant drop in grain and beef prices, the land around here is not going down in value for years (if ever).
I'm just bounding another thought off that comes to mind after reading your comment...

Land markets are so local. Generalizations aren't worthless but almost so. Since the beginning of on-line data - things like land sales prices - I've been able to look at trends and test price changes against things that might influence those prices. In my limited market area real estate prices almost never go down. They go up and if some economic event kicks the crap out of the economy (2008-2010), real estate just sits there. Sure we all know of exceptions. But consider the moment. Cash is everywhere. Business and personal balance sheets are strong. Buy and hold - or just hold - is not so hard. Land's not a commodity. Once you have it you have it. You can't sell it tomorrow and buy it back on Friday.
 
Seems more to me like a created problem. The dems created increased crime and shut downs in big cities causing a mass exodus. Will keep printing money until they run out of ink. Killing small business all over the world. Paying people to stay home. Hyper inflation is happening at an uncontrollable rate. Lumber and ammo is a complete scham. They are producing more lumber now than ever but where is I going? 1 (fully automated) machine at one factory that one ammo manufacturer owns produces 100K rounds of .22 a minute. Good luck finding any to buy though.

Time for a Independence Day party


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Covid coupled with the civil unrest in large cities certainly has contributed to the demand for rural land in our area outside of ATL. Basically, anything within 2 hrs of ATL has seen a nice increase in value with many properties going at or above listing price. I'm talking very rural land. Several good real estate friends specializing in rural tracts of land tell me they have never seen anything like today's market. Where does it go from here? No idea. Anywhere near civilization with modern conveniences and it's nuts right now.
 
Land is very high, building materials are insane. That will correct sometime in the future. Not all land will drop, recreational land with no income may stumble back a bit.

Less than a year ago predictions were corn & soybeans would crash even more. Just the opposite happened. Farm land is solid, and will stay high for 2-3 yrs. $5 or higher corn is a game changer.

We could easily see a major drop in housing, and building costs in the next 2 yrs.
 
Land has been stupid high priced here for over twenty years. Even rough ground that can’t be farmed or ground that floods has jumped crazy in the past ten years.
Around here the fifth generation farmers will pay crazy money to buy up ground next to what they already own and none of them will hardly ever sell off road front property for any price.

Buying hunting ground is almost out of reach for most people anymore in our county. Have to be a multimillionaire, marry into it or inherit it.
Farm ground can’t even be rented out for as high as the payments are on what it costs.
 
I've already started the stagflation party.

Someone is going to have to explain to me how we continue the asset bubble when interest rates reach zero. Below is the yield on the ten year treasury from 1980 to 2021. It will be zero in 6-18 months. If it isn't, I say it's all going to blow, the whole bag, hindenburg, reichstag fire. And we already had our reichstag fire. How much more debt can large cap stocks take on to fund buybacks when the government quits giving homegamers free money to buy stocks? What will happen when the unemployed and overstimulated have to go back to work for less money and start paying their back rent and mortgages?

Or maybe we just stay in fantasy land forever? We're all broke millionaires living in the real life hunger games letting the government run experiments on us in exchange for food and travel vouchers.


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I'm hoping lumber comes back to earth soon...

Its crazy what land is going for near my farm. Realtor told me they have a long, long, list of buyers but no sellers.
 
I'm hoping lumber comes back to earth soon...

Its crazy what land is going for near my farm. Realtor told me they have a long, long, list of buyers but no sellers.
That's just plain weird. I wonder what is driving it? It's not like people have been hoarding cash for years looking to jump on some land. Has Covid reminded people how much they like the outdoors and more privacy?

I suppose for those of us still looking to buy some more land of our own, a lack of sellers at this point might be a good thing.
 
Good land, be it hunting or farm land, hardly ever comes up here. I'm always amazed at the families who hang onto the old family farm even after they are removed from actively farming it or living near it. An excellent 80 would bring around a million these days. Yet no one sells them. I guess people are tied to the land, or they just don't want the tax. More buyers than sellers for sure. Sometimes it sets back maybe 10 to 20 percent, but that's about all.
 
10 yrs of a hot stock market has made some folks a lot of 1s and 0s in their electronic world of investments that they want to convert to something a little more tangible. Also give their family and kids experiences beyond video game entertainment.

Saw bloated bank accounts drive land prices sky high back in the 1990s hot stock markets too. I made a choice between land or a house back at the start of that and missed out on the "cheap" land deals. Land seems to jump in surges. Was like 2x more like 3x in a decade on the good looking hunting stuff. Later the 2008 -2009 crash did not bring prices down any, just slowed the price rise for a bit and more sellers for land for a time.

Back into the 80s and into the 90s had a lot of farmers going broke too. Remember all the John Cougar Mellencamp songs? Today ag prices are driving land prices too
 
That's just plain weird. I wonder what is driving it? It's not like people have been hoarding cash for years looking to jump on some land. Has Covid reminded people how much they like the outdoors and more privacy?

I suppose for those of us still looking to buy some more land of our own, a lack of sellers at this point might be a good thing.
Lake front properties near my land are going nuts. They put high speed internet in and since covid people have really enjoyed working from their vacation homes. I'm only 3 hrs from Minneapolis and many MN residents are buying up land in Western WI. I think all the rioting , covid, politics, etc is the driving force.
 
^^^^^ So Twin Shitties is maybe driving your local markets now. Makes sense. Chitcago does that in other parts of WI and has for many years.
 
That's just plain weird. I wonder what is driving it? It's not like people have been hoarding cash for years looking to jump on some land. Has Covid reminded people how much they like the outdoors and more privacy?

I suppose for those of us still looking to buy some more land of our own, a lack of sellers at this point might be a good thing.
All of the above and I think right now with the government printing $. A real asset is real.
I’m seeing NYC $ flooding NJ beach towns. They want something real in the purse.
Not saying they or any won’t make a mistake scrambling for something or anything.
But it’s a scramble. Not selling my farm, but I wish I had more to sell right now.
 
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