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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (31419)	5/17/2005 9:28:59 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

when home prices crash, there is only one thing that declines in price faster and further - the price of raw land. During the price decline during the early 1990s, land prices declined by as much as 95%. Is that 95% decline in SoCal unimproved acreage back then? In Florida building lots fell 20-50% while large raw tracts took a much bigger hit. It would seem the builders in bubble markets most vulnerable to the greatest profit margin shrinkage will be those with only very high cost basis lots left to build on when the inevitable collapse begins to unfold.