A realtor or somebody, please explain!!!

[5465]

i want to discuss land and land values! it just absolutely blows my mind how much land is per acre in my neck of the woods and it's getting just as bad everywhere else!

now, i'm not completely sure on this but the last time i checked, land her was going for ridiculous prices. figures from my area are:
Flat ground--- $4000-$5000 an acre, if you're buying atleast 3-10 acres, and if you just buying 2 or less of flat ground, it goes for $10,000-$25,000 an acre.
Hilly or Rolling ground--- $3000-$5000 an acre. and if you want to buy land in prime hunting territory you could pay as much as $6000 per acre. doesn't matter if you can build on it or not!

logically my question is this: how in the world can land be worth this much???? i mean, 50 years ago it wasn't, and the land itself hasn't changed a bit. i can understand how cars go up in price, they have changed a lot over the years(although i don't think any of them is worth what we have to pay), a lot of added features and better comfort, so cars make sense to me as far as the value increase. same goes for houses, there a lot different then they were 50 years ago(although i don't think there as strong built), but they have a lot of different beautiful design concepts and heck some arrive at your property "pre-built".

land doesn't change from year to year, yeah price of lumber is up a little so up the price a little bit, but that's the only change that will ever take place in a set parcel of land! ok, maybe value of mineral rights might go up, but land is just not worth the prices being kicked around today!

take this for example, back in the late 50's/early 60's my great-grandfather sold 600 acres for $19 an acre, to help cover some bills around the house and buy a new car. now if you do the figures on that as far as worth today goes(i'm talking about this much money back then was like having this much money today), $11,400 back then is no where near like having $2,400,000 today. now you tell me what's changed, other then times, that would make this land worth what it is today when it looks basically the same as it did when he sold it(few houses here and there now), but you know what i mean!!!

i am very fortunate to have been able to buy the 40 acres i have to my name, i bought right(IMO, i got very lucky)! i got the 40 acres for $30,000($750 an acre). i bought it off an old family friend who we haven't spoke to for quite sometime, he knew that it really wasn't worth much more then that. land all around me is outta sight. my closest neighbor split his 140 acres parcel into 4 acre lots and is selling them for $20,000 a piece. he has owned this land for a few decades now and you know as well as i know he didn't pay near this amount for this land back when he bought it!

is the world just getting greedier and greedier??? i understand that times change and i understand that outfitters/leasers/and big shots from the city can afford to fork out $750,ooo for 160 acres, but for the average blue collar guy, the worth of having your own hunting/recreation land, is pretty much worth the life that your living, and that's sad!!

Pete

 

[150 Class]

I think it has to do with the laws of supply and demand. The supply gets to be less and less every year. Sure, the same amount of land is still out there but suburbia has moved in and diplaced a lot of what you are talking about. There is also more people here today. The population has continued to grow and grow. So, there is less land available and more people wanting it. That along with the economy? Do you think it will get better? Do you think land is a good investment?

 

[Jdubs]

Split,
I think it's a number of factors. First and most obvious is there is only so much dirt, and like 150 stated suburbia is expanding with a growing population. In addition, technology has provided all the comforts not once available in the "sticks". Amenities like 4X4 vehicles, satellite TV, cell phones, and utilities are reaching the farthest reaches of the country. Hunting is no different than attending a pro sports game, going to the mountains skiing or paying outrageous money to stay beach front for one week in the summer, it's recreation, and there is a market out there willing to pay top dollar to attain the experience. Keep in mind, todays internet informs our population like never before, hence, more demand and higher dollars.

 

[Danno]

Part of it is urban encroachment and capital gains taxes. Here's the scenerio. A farmer has a new mall or apartment building that wants his land. They give him an offer that is way more than what it is worth for agriculture. He moves to a less populated area and buys land with money from the transaction but has to do it within a certain period of time to avoid capital gains taxes. The farmer pays more for the land than it is worth locally, but for him it is a great bargain. This is happening all over the country. It is driving the movement of large dairys from California to Nebraska and South Dakota. Ohio and Michigan farmers moving west. Chicago area farmers moving downstate. It is just one farm at a time, but taken collectively it raises land prices. BTW I'm not a realitor, this is just my observations.

 

[DOR]

Split it is pretty simple:
The population keeps growing and teh land stays the same. What was the population 50 years ago? What is it today?

 

[HighJumper]

A realtor would tell you that a property is worth what the market will pay and the banker will loan you enough to get most of us in some financial trouble. Iowa's land is still within reach, but for how long???