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In some local markets, raw land prices are down 30-50%. In addition to sellers and buyers, this has affected some national lenders, who end up writing off losses and decreased their capacity to make more loans. In the Arkansas River Valley, vacant land sales year to date are 32, with an average sold price of $97,945. This is 91% of asking price and property averaged 348 days to sell. Compared to the same period in 2008, land sales totaled 57, with an average sold price of $121,964. This was 91% of asking price at 314 days on the market.
So, you can see that area sales are off 44% and prices are down an average of 20%. Owners sold for the same sales to list price, it just took 34 days longer. By the way, the 2009 price range was $5000-500,000 vs. the 2008 price range of $6000-650,000.
On the other hand, rates for land loans are dropping. Within a platted recorded subdivision, they are as low as 5.75% with 15% down, 30 year amortization and a 3 year balloon. Recently, a community bank proclaimed an “excess capital position” Qualified borrowers are preferred!
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we are looking at a piece of property in island pond, vt and are wondering about a raw land loan, and the criteria for it, thanks sue