Western Land Prices

[wind gypsy]

I’m sitting on more cash than I ever intended to and watching it lose value every day. It’s just hard to buy anything that doesn’t seem inflated but at the same time I think things are different than 2008 as others have stated.

 

[Zappaman]

This sounds a lot like 1929 to me... or was it 2008?

Kansas raw land (eastern central) has gone up about 40%+ over last year's BEST price paid (on a few deals I've witnessed lately). $1650 an acre on conservation (non-farming) land back last summer is selling for over $3k the last three months on a few deals-- depending on the whole deal (house included, etc.). A LOT of Amish suddenly moved in right during this run-up. Everyone was saying "they paid asking!" (six months ago) and today that land is easily going for 30% or better- smart investors they are

 

[Fatcamp]

Even here in eastern SD the county raised the appraised value on my place 60k. And it is not nice, big, or fancy by any means.

Even though those appraised values from the county usually mean squat I think this time they are probably under valuing it. Acreages close enough to commute are getting harder and harder to find.

 

[Broomd]

I read an article that Coeur D'alene had the highest rate of increase in housing in the country right now. I was bored and messing around on Zillow and looking around Montana at prices and decided I'm probably not moving there any time in the near future, lol.

It's insane around here right now. The 80 acres across from our home was available in 2005 for about $160K, We passed on it as we were buying land and building our home out of pocket; it was more than we wanted to spend.
The same property is listed right now for $800K and It appears at least the northern 40 acre half is sold.

 

[MuleyFever]

I dont see this as the same as the last housing bubble. The last bubble was from shady mortgages and variable rates, no income deals and such. This one is due to low fixed rates and masses of people leaving the coasts with a bunch of cash. People have more money due to shut downs and stimulus. Another factor is a lot of construction shut down last year so that created a shortage. The prices may stop rising and very gradually come down a bit but unless there are mass foreclosures from people losing jobs it shouldnt crash like last time. And everywhere I go there are shortages of workers so jobs shouldnt be an issue unless something really bad happens. Now there could be an issue in the future where house prices normalize and a lot of people are upside down from paying these crazy prices. That would anchor people and could cause people to walk away from homes. A rise in interest rates will also slow everything down because the only reason people can afford to pay these prices is due to the low rates.

 

[hunterjmj]

My mom is getting ready to sell her house here in MT and the realtor said be ready to close in 30 days as soon as it goes on the market.