Our local vacant land market has seen its share of price increases over the past year. The price per acre in the first quarter of 2013 was up to over $183,000. The West part of the Valley led the way at nearly $600,000 per acre. Sales were also up to 578 acres compared to 323 in the first quarter last year.
Throughout the Valley as a whole, prices are still only about 20% of what they were in 2007 when the cost per acre averaged almost $940,000.
Most of the buyers appear to be investors or homebuilders. Homebuilders seem to be willing to pay above market averages in some neighborhoods. Pardee Homes recently bought 2 parcels totaling 9 acres near Sunset and Fort Apache for $404,814 per acre. This reflects just how low builders are and how much they are looking to add to their pipeline of new development.
This means that if you are in the market for a new home; brace yourself for rising prices in the next couple of years.