Public builders are dominating finished lot purchases, which is increasing their market share in major metropolitan areas. Although demand for lots and land cooled slightly in the 2nd quarter, our survey of the top land brokers in large metropolitan areas around the country tell us the public builders continued to buy finished lots at a much faster pace than the private builders.
Land prices didn’t change much in the 2nd quarter, with slightly rising prices in Texas being the notable exception.
Finished lots in good locations are becoming a rare commodity, primarily because consumers have demonstrated they are less willing to commute than they were several years ago. Because of this, we are expecting land development in good locations to increase later this year, especially now that conservative bank financing has returned.
There are many ways to implement a successful land strategy, depending on your market, your access to capital, and your expertise. If you are an experienced land expert with access to capital, contact us if you would like to discuss strategic options.