Gasoline – $22.40 Per Gallon

Thursday, October 1, 2009:

Gasoline – Bargain Priced at $22.40 per gallon

Let’s suppose you come to the mountains several times each year.  You come for recreation and the pure enjoyment of our beautiful surroundings.

Not long ago, when you came to the mountains, you would have found most gas stations here pricing their “Regular Unleaded” at about $4 per gallon.  You may not have liked paying that price – but you did – and enjoyed your trip.

But think for a moment what your reaction would have been if you gassed up here, and found that all the gas stations had priced their Unleaded at $22.40/gallon.  That’s right – $22.40 per gallon!

If you’ve thought about buying land here in the mountains, that’s exactly the scenario you would have faced until recently.  Here’s an example for you to ponder.  In Watauga County, the ASKING price for 100+ acres of unimproved land rose to an unprecedented price of $42,000+ per acre.  The actual SELLING price, however,  for land over 100 acres prior to this escalation in Watauga County averaged $7,016/acre in 2005, $10,852/acre in 2006, $5,489/acre in 2007, and $8,000/acre in 2008.

That example equates well to my hypothetical $22.40/gallon for gas.  Why?  Because, when prices escalate beyond reason and reality, we tend to stop buying – whether it be for gasoline or land.  The resulting reduction in purchases inevitably leads to a recession.

Now,  here’s the good news!  Asking prices have now moderated back to within a few percentage points of actual selling prices.  In other words, just as gas prices have withdrawn from their previous high, so have land prices.  If you still want to purchase land, and haven’t been back recently, you may easily miss the train.  It’s leaving the station as other savvy buyers recognize that land choices are more plentiful than ever and prices are right on the money!

Don’t believe me?  Take a look at our Reduced Properties

Now IS the right time to buy.  Wait too long and . . . well . . . you know the rest.