Land Sales Go Up As Prices Fall 28 Percent

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Last week’s column was an update on home sales in the Rim Country for the third quarter of 2010.

Of course, home sales make up the largest portion of our real estate market, however, land sales are also an important part of the mix.

Land sales have slowed significantly since 2005-2006, however, while there has been a significant drop in pricing, the good news is that lower prices may have stimulated an increase in unit sales.

Below are statistics comparing land sales for the last year to the previous 12 months.

Payson–Star Valley

There are currently 457 land listings in Payson-Star Valley.

The average listed price is $200,108 and the median is $130,000.

In the last year there have been 68 land sales at an average price of $67,763 and a median price of $54,500.

Average time on the market for these sales was 266 days.

The prior year there were only 35 land sales, however, the average and median price was higher.

The average price was $94,450 and the median price was $85,600.

So the good news is that we have almost doubled our land sales in the Payson-Star Valley market this last 12 months, however, the average selling price has declined by 28 percent.

Pine-Strawberry

Pine–Strawberry has 90 active land listings.

The average listed price is $103,710 and the median is $87,700.

Similar to Payson-Star Valley, land sales have almost doubled in the last 12 months.

We had 23 land sales this year compared to only 12 in the previous 12-month period.

The average selling price was $66,712 and the median price was $53,550.

In the previous 12 months the average selling price was $79,303 and the median was $80,750.

P-S, like Payson-Star Valley experienced a drop in average selling price, but only 16 percent.

The clientele who is looking to the future and at some point building their cabin or dream home are taking advantage of today’s low land prices.

At some point, the law of supply and demand will become evident in the Rim Country because of the restricted supply of land.

In the event Arizona State University comes to fruition in Payson, our cost of land and housing will assuredly see an increase.

While the purchase of gold as an investment seems to be in vogue, perhaps Will Rogers said it best, “Buy land. They ain’t making any more of the stuff.”

Ray Pugel is a designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.

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