There appears to be little impetus driving sellers to reduce prices despite weak demand for certain types of land. To the contrary unstable stock prices will drive land values higher as investors become convinced that land offers more security.

Why are land sellers holding their ground while house sellers sink?

Much has to do with the underlying mortgage…or lack of one. Hardly any of our current land listings are mortgaged. On the other hand, the entire housing meltdown is attributable to bad lending practices and mortgage pressure on homeowners.

Even mortgaged land differs substantially. Banks have always been conservative when it comes to land loans with 60% to 75% loan to value being the norm. Without political pressure on lenders to make everyone a landowner, credit qualifications were valid and borrowers actually paid a down payment along with closing costs. In short, most of the people financing land are monetarily committed to the deal.

There are many types of land and a few are currently down. Commercial sites and high-density development sites may be stagnant for quite some time. The development market flourished while being driven by ambitious developers and a huge demand for building lots. Quite a few of these developers are now holding overvalued tracts with an accompanying debt load. When you factor in huge increases to infrastructure costs due to asphalt, pipe, concrete and storm-water control, it will be difficult to justify building out these projects anytime soon …even if there were builders wanting to buy the lots. Read more »

Senators McCain and Obama came to Blue Grass this week for a fourth debate, because they recognized that my vote might decide the 2008 election.

We sat at my kitchen table. They came dressed for farm work, both in new bib overalls and ironed flannel shirts.

Me: Senator Obama, say some good things about Senator McCain.

Obama: Well, let’s be clear. For a man his age and considering the dreadful things he’s been through over many decades, like skin cancer and five years of torture, yes, for a man his age, I think he’s doing okay. I hope I’m as chipper at 72.

Me: Senator McCain, same question about Senator Obama.

McCain: That one gives a great speech, which he learned how to do at those Ivy League schools that Bill Ayers and other terrorists might have attended while they were making bombs. I dropped bombs on Hanoi, but I sure didn’t make them in my college dormitory room. Senator Obama has yet to deny that he associated with all the terrorists, socialists and Woodstockists that he could have associated with back then. America doesn’t know the real Barack Obama, and neither do I. Read more »