Land Prices I think have Peaked!

[phoenix64]

Sf3 I agree, shades of 1980 all over again, gold
and many other commodities had peaked, grains
and real estate started their slow descent.....only
thing missing is a hike in interest rates which
seems inevitable considering the resurgence in
the us economy.

[SASKFARMER3]

New guy study history! Their is a reason. its
simple, so individuals don't repeat the same
mistakes again.
30s 50s 70s late today.

[newguy]

I never said there would never be a
peak.Predicted last year land prices had
room to move up a bit yet. Seems they
had more room than I thought. 24700 for
130 acres of bush and 30 acres broke
.Ritchie auction Guy Alberta. Buying
land may involve a differant risk factor
for differant people. I bought my land
before and after the 80s high prices.
Sask land will never drop in price as it
did years ago because our population is
now growing instead of decreasing like
it was back then.People bring money
Money brings people.

[farmaholic]

I would hate to have bought a section
for a million dollars in this
environment. I've been preaching
correction too. How far would it fall,
depends. But I am happy the bar has
been set alot higher. It has been only
the last couple of years it went nuts
here--about 2.5 to 3 times the new
assessment, before then it was
reasonable. I've also said before, it
isn't farmers(generally) that have drove
up the prices to the levels we see today
but "investors" with pockets full of
cash looking somewhere to park it, WILL
THEY BE ABLE TO UNLOAD IT IN A FALLING
MARKET? Good luck finding a SYMPATHETIC
buyer(I am not mean spirited by nature).
And no, I don't think there is anything
wrong with buying the missing piece of
the puzzle for more than market price.

Let's hope we get in the fields in
reasonable time and all goes well, be
safe as time will be of the essence, we
don't need anymore "statistics".

[grefer]

I can only speak for my area as each area is quite
different as to what is driving land prices. It is a
totally different ball game today than in the
seventies here. With the change in land
ownership rules in Saskatchewan it has brought
alot of new money to the table that was not
available in the seventies. This money comes
from oil money as well as others that think land is
a good place to park some cash with the good
commodity prices we have seen since they
started mandating the use of ethanol in gasoline. I
know land prices will soften when interest rates
rise for a number of reasons but it will not drop to
levels we had even ten years ago. Of course if the
whole world economy collapses all bets are off.
JMO.

[riders2010]

You d be kiddin yourself to think land valuation is going to go back to the way it was. Agree with above here too much world demand for other things other than food and food demand is not getting smaller and it won t. Simular land that sold for 1100 acre last year selling for 1500 this spring.

[SASKFARMER3]

Again study History boys.
Germans came with fist full of money. Got around sask laws was easy and they owned a lot of land. Guess what 90% are gone and left with a little bit of cash.
Now I do agree rider that we wont get back to the low prices when I was purchasing land.
But think about it a house in regina new 12 years ago was $200,000.00 in a very nice neighbourhood. Today same house is $750,000.00
Where will it drop back to probably 250,000.
Land today at $360,000.00 to $250,000.00 will probably drop back to 150,000 and 80,000.00
Because of one big reason. Its happen in the last century three times you think it cant happen again.

[newguy]

Most areas of land that is near to
population of people is worth the most
money. Any land in Sask that is very
good producing or close to a growing
population will not come down any from
current prices. Land that is further out
and is only average dirt has probably
reached it's limit and may go down some
if things really go bad. But Sask is now
part of the global picture and if things
do go bad farmland may be where people
rush to put even more money to.

[boarderbloke]

If land prices go down on the praires, it'll be like a big neon sign flashing "On Sale" rather than "For Sale",,,"Roll Back Prices". Really, there isn't much land here when one thinks about the global wealth, bidding on land, from around the world. The other big part is government stability. Africa might have good cheap farmland, but how stable is it there? Also SA, but look, they currently have a socialist government in Argintina, resricting farmers from selling/storing. And Brazil with it's transportation problems. The farmgate price of soybeans has droped to $3-4/bu because of the trucking freight(loaded trucks waiting days or longer) and buyers passing on the demurrage from waiting ships.
Prairie land may still seem like a good deal in the long run.

Won't "globall warming" make it even better in the future with longer seasons and the potenial to grow corn! (sarc off)

[ado089]

Newguy, A couple of weeks ago you were
embracing the moisture because of your
dry sandy dirt in eastern Alberta and
this week "our land prices in sask will
never drop" You seem a little confused
about where you live.

I always get a kick out of folks that
think the value of something can never
go down and the shock and surprise that
ensues when invariably it does. When
bubbles pop the values always drop at
least to starting point if not lower.
Double digit year over year growth is a
pretty good indicator of a bubble.

Smart acquisitions are always good so
I'm not saying growing even when it's
expensive to do so is a bad idea, but
growing aggressively during these times
usually is. I personally am going to
chuckle when these big swingers get
their ***** slammed in the door.

As for Saskatchewan my beloved
home...It's still an indian infested
shit hole that is frozen 7 months of the
year, a fancy night out is still
considered Earls and the Chinese buffet
is the extent of our cultural diversity.
There is no where closer than 6 hrs to
the mountains and direct flights out of
here are hard to come by. There are next
to no major corporate head offices and
our economy, as diversified as everyone
thinks it is, is limited to being
diversified across several different
commodities. Once the building boom
implodes on it's self and commodities
drop off as they always do our fair
province will clear out again. But hey
if you're such a believer I have 7
quarters 45 minutes from Saskatoon you
can have for a steal at $1.75 million.