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Old 02-21-2009, 05:46 PM
 
1 posts, read 1,596 times
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Hello all,
I have a question specifically for realtors/developers in the phoenix area.

What have finished lot prices done in the last couple of years?

I live in Portland, and here we saw an average lot price around 175k. Since then, the prices have come down to around to around 110k, but I am wondering how low they will go.
One way to estimate the long term value of the lot is the replacement cost of each lot. If we figure 30k for raw land, and 50k for development, we have an estimated replacement cost of 80k, or a point at which supply halts and as demand continues, bringing prices back into equilibrium.

Did/has land in phoenix go below the replacement cost? Have banks foreclosed on lots and put them up for sale, or have banks let developers keep them knowing the bank can't do any better.

Any information on land price trends would be appreciated.
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