Are land and vacant lots the new hot buy in Real Estate?
Despite the fact that most western states have 2-3 years of lot inventory many investors are betting that the recovery will leave builders with nothing to build on.
Who is buying the lots? Right now it’s more of a long term hold so private equity firms and national home builders with the ability to wait are buying.
Who is selling? Banks and local/regional builders.
It will take a few years for prices to recover and the new home shortage to become a reality but it could be a great investment to buy lots at 25-50 cents on the dollar if you can wait. Keep in mind that in the Portland market that close-in “in-fill” lots are still selling at a premium and I don’t expect this to change. Look a little further out of the core of the city and there are deals a plenty.