What 77 of the Top Land Brokers in the US Had to Say
77 of the Top Land Brokers in the Country Had This to Say…
- Flat finished lot prices. 62% of brokers report flat lot prices this quarter. Only 32% report rising finished lot prices during Q2 versus a whopping 71% reporting finished lot price increases one year ago. Appreciation slowed considerably in 4Q18 and remains muted.
- 6% YOY finished lot price appreciation. It appears that very little of that 6% finished lot price appreciation has occurred recently. YOY appreciation estimates range from: o 3% in Florida (where 4 of the 12 brokers said prices fell this quarter) and Southern California, to o 9% in the Southeast and Northeast.
- Slowing sales volumes. Broker demand ratings for Hot or On Fire slipped to 54% from 86% one year ago, with regional variation: o Strong demand in Texas. 86% report stronger demand than expected. o Weak demand in Southern California. 44% report less demand than expected.
- We noted two interesting developments this quarter:
- Build-for-rent is making an impact: An interesting comment came from a Tampa broker stating, “The single-family rental REITs purchased 10% of the finished lots for rental home projects. You need to set up a separate category for that.”
- More self-developing: Builders are buying more paper lots/undeveloped land to control lot positions that are priced to support construction of affordable homes.
Looking for a private loan for new construction or real estate development in the Midwest (Colorado, Utah, Texas, Wyoming)? Contact Broadmark Real Estate Management today for a quote.