re:I realized that what is happening in our areas is that the county commissions can't approve subdivisions fast enough, so there is a shortage of buildable lots in planned unit developments (PUDs) with the infrastructure already in place. This is exactly why we see price appreciation. The process one has to go through to subdivide and develop land is time consuming and arduous. In areas with many environmentalists, and strict city planners you will find a shortage of available lots (less supply for the demand).
As long as the amount of demand out weighs the number of buildable lots (in areas of population growth) you will see price appreciation. If you want to get into this become a developer..... buy subdivide and sell.....
Recently in Maryland, near DC, an apartment was converted into condo. 2 bed/2 bath are selling for 400k, with condo fees about 500/month. Many people are buying them for investment. How do they cover the mortgages? I am just puzzled.
You've got a point there, and its been hard to be a landlord right now. There are too many amateur real estate investors hopped up on "Rich Dad, Poor Dad", trying to buy in at the wrong time. In my neck of the woods, however, I have recently seen rents start to rise. This is something I monitor by taking an average of rents in the classified ads of my newspaper. Anyway, from the feedback I'm getting, there is also an exodus of landlords who are cashing out. The number of landlords cashing out, coupled with the knowledgeable landlords who are not buying at these high prices, seems to have more weight than the dwindling number of potential tenants and idiot landlords. The bottom line is that it seems like rents have bottomed, and they are starting to come off the lows. SM