Future Real Estate Markets

[BrandonA]

When the cost of borrowing money increases real estate will come down. The Fed has backed themselves in the corner and have to be aggressive with rates to curb this inflation. No way around it

[adam_p]

We're headed for a recession rapidly. We can not sustain these inflation rates. Wages aren't even remotely keeping up with it. Something has to be done about fuel or it is all going to come crashing down. I don't think we are over the edge yet but we are drunk stumbling around up there.

[wlgiv]

In the 70’s my parents bought 500 acres for $500 an acre. I feel I was lucky to recently find 500 acres for $2,500 an acre.

[BrandonA]

In the 70’s my parents bought 500 acres for $500 an acre. I feel I was lucky to recently find 500 acres for $2,500 an acre.

Adjust that price for historic inflation. That’s what people don’t calculate into valuation. In the 70’s you could buy a new truck for $3500 or so. You have to look at historical inflated prices

[M16]

Go back and look at Fed Funds rates between 1989 and 2004 and compare the land price chart I posted...Rates trended down and so did land.

Don't forget about the government back then taking away the interest deduction for property that wasn't your house. That made a big hit on real estate.

[ram04]

What I'm wondering is what happens as baby boomers are exiting the work force and will be liquidating assets to increase liquid money to fund retirement and medical bills over the next decades. Boomers didn't have enough children to replace themselves or their demand for products. It seems going forward from here you will have less demand as well as less capital to buy up assets being sold off. You will have hot spots where real estate prices stay flat or gain but we will be entering for the remainder of the century a lack of people problem that will cascade through workers, services and goods. This is just something I'm noticing, not sure how it will manifest itself in commodity prices but its definitely a trend.

[trophy8]

We're headed for a recession rapidly. We can not sustain these inflation rates. Wages aren't even remotely keeping up with it. Something has to be done about fuel or it is all going to come crashing down. I don't think we are over the edge yet but we are drunk stumbling around up there.

I’ve been wondering the same. I’m fairly young. God willing I have lots of work time till I retire but my investments are taking a beating. Cost of living is sky high and getting worse. 5 years ago my pay was excellent. Due to inflation it’s not anymore. Disheartening at times. Something has to give.

[M16]

What I'm wondering is what happens as baby boomers are exiting the work force and will be liquidating assets to increase liquid money to fund retirement and medical bills over the next decades. Boomers didn't have enough children to replace themselves or their demand for products. It seems going forward from here you will have less demand as well as less capital to buy up assets being sold off. You will have hot spots where real estate prices stay flat or gain but we will be entering for the remainder of the century a lack of people problem that will cascade through workers, services and goods. This is just something I'm noticing, not sure how it will manifest itself in commodity prices but its definitely a trend.

There will be plenty of illegal aliens to take up the slack.

[backwoods]

Texas A&M publishes both and nominal and real (adjusted for inflation) land values for the past 50 years.

Looking at the "real" values, you can see that land hasn't really fluctuated much despite all the happenings of the last 5 decades. Raw, rural land remains a strong hedge against inflation.

https://www.recenter.tamu.edu/data/rural-land/#!/state/Texas

[gingib]

I’ve been wondering the same. I’m fairly young. God willing I have lots of work time till I retire but my investments are taking a beating. Cost of living is sky high and getting worse. 5 years ago my pay was excellent. Due to inflation it’s not anymore. Disheartening at times. Something has to give.

Agree!!!

$100-150k isn't what it was 4-5 years ago

[ram04]

There will be plenty of illegal aliens to take up the slack.

Better hope so, when you run out of people your country dies.

[BrianL]

In the 70’s my parents bought 500 acres for $500 an acre. I feel I was lucky to recently find 500 acres for $2,500 an acre.

$500/ac in 1970 is equivalent to paying $3725.63/ac inflation adjusted today. Not that far off for an average.

[LWC]

Better hope so, when you run out of people your country dies.

At least you didn't say we and our.

[HogHunter34]

Just had a 13 acre raw land listing hit the market here in Cherokee county. All Timber doesn’t appear much quality to the fencing. Listed at $208k

[Tuffbroadhead]

I hope it falls......We just approached 3 seperate land owners that own land that borders ours in an attempt to buy them out.