Dean Saunders Speaks at the 2012 FLORIDA REALTORS® Real Estate and Economic Forecast Conference
Dean Saunders, ALC, CCIM, participated in a state-wide panel of real estate experts at the Market Economic Outlook for Florida Land: 2012 FLORIDA REALTORS® Real Estate and Economic Forecast Conference. The group shared their economic forecasts and their observed market trends for Florida real estate in their respective areas of expertise.
Hosted by the Florida Realtors®, the panel discussion included representative sectors of Florida’s real estate market featured leading US economists and real estate experts.
Dean presented that there are land deals being made every month. The typical land buyers have money, are cash buyers, and buy land because they want it, as land is perceived as a hedge against inflation by institutional investors and wealthy Americans.
- Farmland values are being impacted by strong commodity pricing and institutional investors are flocking to farmland under the notion that farmland is a safe investment.
- But, there is a slow decline in ranch, recreational, and timber land values.
- Conservation easements are helping to ease the pain in this sector, but bank-owned distressed properties are now coming onto the market and will slow it down even more.
- There is no growth in development land. Finished lots are selling for 50% of the cost of actual lot development and the lack of economic expansion in the development market impacts transitional land and infill development land. There are so many lots in inventory that it will be a long time before single-family development will have any significant impact on the market
- New alternative energy and biomass projects are bringing to the market a lot of ideas, but no money has been put into the market yet. It will be an influence for future buying and renting of land.