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People who buy homes like to fix them up, people wanting to sell homes like to fix them up. People have figured out they can do this work themselves. Home Depot is safe,

As one of those who are always fixing up their property, I can attest that Home Depot is financing my remodeling/repairs. We have been able to get 12-months-same-as-cash for the past 4-5 years. Sometimes, in the case of repairs, we have to accept a 6-month no interest deal, but usually that is still a good deal for us.

I know people who have purchased 2nd homes in the Silicon Valley, ostensibly for retirement, who got greedy after seeing their 40% appreciation/year and then refinanced the first 2nd home to buy the second one. They make very good money as professionals in our low-cost region, so it really isn't hurting them if the appreciation stops and they are simply holding on to the investments for a longer period.

Out here in the rural heartland, the banks do not like to loan money for unimproved land, since they can't easily resell those mortgages on the secondary market. So, in some cases, realtors are pressing sellers to reduce their asking price for the land. The result is lots and lots of starter castles being built on 20 acres. Local government loves it because the taxes on that land go up from agriculture levels to recreational levels upon closing, while ag land tax rates are being reduced for political reasons.

We are seeing an influx of urban folks who have sold their former property for huge gains and investing part of it quickly in a new home with land out in the sticks. Meanwhile, the developers are moving closer and closer.

I think as soon as gas prices retreat, the rural areas will see another huge gain in land prices. Not to mention that more of the big chains, like Walgreens, are following Walmart out to the small towns, reducing the need to drive very far to shop.

As for the truckers, I see lots of spiffy OTR cabs parked in the driveways of very nice rural homes along with nice boats and nice automobiles. These are owner operators who still look to be doing well.

JMHO

reformedliberal writes:
I think as soon as gas prices retreat, the rural areas will see another huge gain in land prices. Not to mention that more of the big chains, like Walgreens, are following Walmart out to the small towns, reducing the need to drive very far to shop.

Hmmmm... what if gas prices don't "retreat"?

The same thing that Will Rogers once said about land also applies to petroleum. I can only foresee prices going _higher_, not lower. Of course, I could be wrong....

Actually, I expect the housing bubble to burst long before the petroleum bubble (if there indeed _is_ one). I expect to see gas prices at $10 per gallon before I'm gone, and I'm not that young anymore.....

- John