We talk a lot about the Phoenix housing market, but we rarely mention the market for the dirt underneath. I thought Doomers would appreciate this update from M:
Here’s a quick update on land parcels. It’s a disaster…worse than housing. Ever since the builders started "dumping" all their land and options, prices and volume have "fallen off a cliff".
SOLDS (LAST 30 DAYS) 247
Absorption ratio measured in YEARS!!! Three years and eight months….in case you were wondering. As you would expect, most commercial and infill residential lots are doing OK, the glut of inventory is in the outlying areas.
Location is going to make a huge differernce in how well the value of a land parcel will hold up. Still, with that sort of inventory, expect downward pressure on prices for at least the next couple of years.
[Thanks M, your updates are always appreciated!]