An interesting article in Philly.com, Philly land prices plummet, as weakening housing market tightens purse strings, has some statistics on what could be the start of a slowing real estate market. The article opens with some interesting research on the change in vacant land prices and how they could be the leading indicator of coming changes.
Prices paid for vacant land in Philadelphia have plummeted to their lowest levels in three years after peaking in 2017, an indication that the city’s development boom led by townhouse, condo and apartment projects is losing steam.
Buyers of bare development sites paid a median price of $31.72 a square foot during the first six months of 2018, down more than 46 percent from last year’s $59.23, according to public data compiled this month at the Inquirer’s and Daily News’ request by Kevin Gillen, senior research fellow at Drexel University’s Lindy Institute for Urban Innovation.
The article then goes on to show how this data usually precedes a slowing market. As a real estate investor it’s important to be cognizant of what part of the real estate cycle is happening.
Knowing that you are likely to see the continued tightening of the market in many areas, should lead you to plan your investing accordingly.
Definitely, recommend taking a look at all the research in the article.