In the video below, land expert Eric Andrews looks into his crystal ball and explains the 2017 land sales outlook for 2017. There is some good and bad! Also, 2016 was a phenomenal year, and 2017 is on track to be even better.
Will land prices increase?
In Chatham County, Eric expects land to increase at a rate of 2 or 3%. There are lots of land owners asking a little more for their property than it is worth. Most of the overly optimistic land owners are not close enough to Chatham Park to get what they are asking. Also, it is going to be a very long time before Chatham Park is done. It is 2016 now, and the creators expect that it will still be a work in progress in 2046.
Real estate, homes, houses, commercial property, raw land and new construction – all prices are on the rise. When an appraiser comes in to appraise the value of a home, they are looking at historic prices. So, if you are selling a home which is currently worth $300,000, an appraiser may appraise it at $280,000, as similar, nearby properties sold for around $280,000. Of course, appraising using these methods results in a lower appraisal price, which can complicate home sales and the mortgage lending process.
Mortgage rates at historical lows
Banks have not been aggressive giving out loans as rates are so low right now. Basically, for them, this means lower profit margins. For home buyers, this means good deals on 15 and 30yr mortgages compared to what they were just a few years ago. We’re not sure how mortgage rates will do in 2017, but if they stay low, home buyers will keep buying.
Large acreage tracts becoming more rare in Chatham County
Foreign investors and groups of people forming LLCs have been buying raw land in Chatham County as an investment. This means they are buying it and sitting on it for 5, 10, or even 20 years. With all of the interest in land in Chatham County, large acreage tracts are becoming increasingly difficult to find. People looking for reasonably priced land are being forced to go down to Goldston, Bonlee, or even south of Siler City to buy 20, 40 or 100 acre tracts.