In our sales meeting yesterday we looked at how land sales compare to previous years. What spurred this investigation was the fact that I realized that since our last meeting which was one week ago there were ZERO land sales.
For the year through 9/2/09 we have had 74 land transactions. To give some perspective last year through the same time period we had 134 land transactions.
Hang on because this is were it gets interesting...In 2007, from 1/1/07-9/2/07 we had 301 land transactions! It gets even better (or worse) for the same period in 2006 we had 434 land sales and 440 in 2005! To say we have had a slow down is a gigantic understatement.
To put this in perspective lets look at it like this. Let's assume that we will end the year with 100 land transactions. Currently, we have 1871 land listings in Haywood County. If you calculate what we call the "absorption rate" (how long it will take to sell the current inventory) based on 100 listings sold in a year and 1871 listings, it would take 224.52 MONTHS or 18.71 YEARS to sell off the existing inventory. If you have land for sale in the county you just read the facts of why it is not selling. The interesting part to all this is it seems most owners have not lowered their prices to match the current marketplace. Should they?