Monday, May 11, 2009

Alabama Land- Market Update May 2009

Alabama Land Market Update 5/11/2009

Everyone wants to know what is happening in the land market in the current economy. After speaking with numerous realtors in AlaLandCo and from other companies, a few trends seem to be present in the current market.

1. Rural land prices have diminished slightly. We are seeing sellers willing to drop their asking price from the aggressive "retail" figures from 18 months ago. The owners that are willing to acknowledge a these trends in the market are more apt to find an agreeable buyer. The last 2 properties we have sold in Perry County were not high-dollar recreational tracts, but lower-priced, stable investment buys.

2. Buyers are looking for functionality. Many people are looking for their dream combination of owning a nice house and land to go with it. We are seeing people looking for homes with 5 to 50 acres. Some buyers are looking for their new place to live and retreat in the current climate.

3. People with cash want a deal! We get a good number of calls on our properties that are $1500 to $2000. Investors realize that deals are available, and that money talks. If you have cash it is certainly a buyer's market.

4. Not many foreclosures on land. Rural land has not mimicked the housing market with a surplus of foreclosures from which to choose. Many times landowners inherited the property or own it outright, and therefore are in no economic stress because of their land. There are a few exceptions however. Some sellers are getting creative with owner financing, auctions, sealed bids, and other enticements to bring buyers their way.

Whatever your land needs, please do not hesitate to call me. Now is a great time to buy or sell rural land. Even though asking prices may be lower when you sell, realize the same holds true when you buy. Let Jonathan Goode help you buy or sell your Alabama land.


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