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SE MN | A real correction would probably require a stock market crash (>50%) and mass unemployment. Employment has been much more resilient than the talking heads expected, I assume because of mass retirements during covid and we finally rolled over the peak of boomers in the job force. Even a stock market crash isn't enough without the doom cycle of unemployment spiking.
In the last 6 months I've seen two pieces of land that "appraised" at $9k plus sell for 6-6.5k. One was an auction, the other private sale after being on the market for a year advertised at 9k. Both of these are very undesirealbe with lots of bad fence and trees, wet spots, sink holes, patches of fields mixed with pasture and unfarmable areas. In reality, it was probably 7-8k land at the top. Desirable land has been holding at $10-15k. The last time I talked to the banker I complained that higher interest rates hadn't brought land prices down and he said they had. With lower rates, land prices would be much higher than they are, so maybe we've already had the correction from where prices could have gone.
It definitely appears with the government debt going parabolic that money devaluation is a forgone conclusion, so the price of real assets should only go up, at least priced in dollars. | |
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Land and Home Prices Ahead?
