What’s Up With Land Prices?

In Upstate, SC land prices are still up…and will probably stay there.

There appears to be little impetus driving sellers to reduce prices despite weak demand for certain types of land. To the contrary unstable stock prices will drive land values higher as investors become convinced that land offers more security.

Why are land sellers holding their ground while house sellers sink?

Much has to do with the underlying mortgage…or lack of one. Hardly any of our current land listings are mortgaged. On the other hand, the entire housing meltdown is attributable to bad lending practices and mortgage pressure on homeowners.

Even mortgaged land differs substantially. Banks have always been conservative when it comes to land loans with 60% to 75% loan to value being the norm. Without political pressure on lenders to make everyone a landowner, credit qualifications were valid and borrowers actually paid a down payment along with closing costs. In short, most of the people financing land are monetarily committed to the deal. Read more