Real Estate Supply And Demand

Friday, June 19, 2009:

Supply – demand – supply – demand – supply – demand . . . .

When supply is up, and demand DOWN – prices fall. When demand returns and supplies begin to shrink – prices go UP. In the land business, the past two years have seen supply going up with prices falling. Don’t you wish you could buy the land you’ve wanted just as the current recession cycle hits its lowest point?

Ooops! You already missed it. The cycle has already begun its “recovery” phase. It started Christmas week ’08. Fortunately for you, the change begins as a period of more “activity” – land buyers begin to awaken and ask questions, ask for information, and begin “looking” at properties.

For example, in April we experienced three times the inquiries that we saw in February and we showed 288% more properties during the same period.. Also, yesterday, CNN Money Online reported that new home starts were up 17% in May. 

So . . . we’re already 6 months into the recovery stage. We expect actual sales to begin their recovery beginning now and over the next 90-180 days. During that period, properties priced at the lowest levels are most likely to be snatched up. Once that happens and demand heightens even further, you can be sure prices will begin their rise.

You’ve no doubt heard the “shoulda, woulda, coulda” expression that is the excuse most often used to say “I missed an incredible opportunity!” For example, one owner recently priced his 21-acre property at an incredibly low $39,000. We’ve had over 105 calls, many from individuals who want to know “what’s wrong with the property?” (it’s located near the Blue Ridge Parkway on a state road with incredible views). No one has bought the property, yet it’s the absolute best bargain we’ve had in years. Go figure!