Jay's Opine: Really not all that surprising. Do you think the value of your home increases as the structure ages and deteriorates? Generally speaking, older homes are in more need of repair, have higher maintenance costs, and aren’t as energy efficient as newer homes. Yet home values tend to increase over time…. Hmmm. Is it the actual structure that increases in value, or is it the LAND the structure is sitting on that increases in value? It’s all (well mostly) about the land…
Land values in and around the Phoenix area have exploded in the last couple of years. We recently listed and sold several 5 acre parcels inan area northwest of Phoenix called Whispering Ranch. As recently as two years ago, these parcels were selling for $8,000. Today's prices? $60,000 - $100,000. Don't you wish you'd bought a dozen two years ago? For more info, see our main website and our blog.
Land Prices Increasingly Drive Housing Markets, Fed Study Says
By Campion Walsh
From The Wall Street Journal Online (June 22. Article Link)
This blog entry sucked.