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©2011 Cengage Learning
Chapter 11 ©2011 Cengage Learning RURAL AND RECREATIONAL REAL ESTATE MARKETS
Farmland Markets Orchards Irrigated croplands Dry croplands Irrigated pasture Dry pasture Rangelands ©2011 Cengage Learning Agriculture is a major land use & includes
Farmland Markets Grains & Oilseeds Cattle Poultry & Eggs Milk Fruits & Nuts ©2011 Cengage Learning Major Crop Categories
Farmland use is determined by which crops will grow, at what cost, and the estimated yields of each. Soil Productivity Rainfall Growing Season Water Supplies Topography Shape, Size and Layout Improvements Access Markets Community Facilities Permits and Quotas Competition from Other Uses Urban Influences Crop Prices Financing Environmentalism Labor Relations ©2011 Cengage Learning Key factors:
©2011 Cengage Learning Figure 11.2 Soil Class, Slope, and Erosion A Map of the Soil and its Capability
Over the past century there has been a huge increase in agriculture output per farmer A sharp rise in average farm size, mechanization, & invested capital per farm. Family farms have decreased and corporate farms play a bigger role. ©2011 Cengage Learning
Rural Homes Increased number of people turning to the rural land market. The demand for rural land for retirement, life-style, & recreation. Tied to the expansion of discretionary income and available leisure time. ©2011 Cengage Learning
Rural Subdivisions – Second Home Markets Several categories: Recreation including ski resorts Coastal Beaches Remote Areas ©2011 Cengage Learning
Key Factors of Newer Rural Subdivisions Orientation to recreational attractions Limited market Speculation is another factor Financial risk is high Many subdivisions created with marginal services & infrastructure. ©2011 Cengage Learning
Key Factors of Rural Subdivisions Existing Infrastructure Speculation Shifts in demand ©2011 Cengage Learning
Rural Homes: Older vs. Newer Sold on a local market Local influences determine prices Water well and septic systems must be considered Boundaries of the properties are problematic Quality and adequacy of improvements Different buyer profile ©2011 Cengage Learning Older rural homes have entirely different market factors from newer recreational subdivisions & include :
Key factors in Timber and other Resource Lands Not connected to the local economy or real estate market. The demand and supply of the resource markets dominates. Transportation is a major cost consideration. Critical characteristic of the resource parcel include the size of the ore body or timber stand. Environmental and pollution controls may vary. Generally treated as a special category by governmental agencies, often in a favorable or preferential way. Income tax treatment includes: depletion allowances for underground resources capital gains treatment for timber sales ©2011 Cengage Learning
Trends in Resource Land Markets Gradual depletion of the richer resource concentrations makes the more expensive and less desirable locations more desirable. Increase in prices for materials make marginal areas profitable. Trend for increase in resource prices. Exploration and resource development will be more complex and expensive. Large corporations will dominate. Environmental and pollution control costs are increasing. ©2011 Cengage Learning
The rural home market is two markets—new recreational subdivisions & older rural homes. Each market attracts a different type of purchaser, and each has its own advantages & liabilities. Recent trends in technology and the continued depletion of resource stocks have made the exploration and further exploitation of old resource areas attractive. ©2011 Cengage Learning
DATA COLLECTION AND ANALYSIS n GENERAL DATA: SOCIAL CONSIDERATIONS n POPULATION CHARACTERISTICS SUCH AS AGE, FAMILY SIZE, HOUSEHOLD INCOME, ETC. n PRESENCE.
SALES COMPARISON APPROACH THE PROCESS IN WHICH THE MARKET ESTIMATE IS DERIVED BY ANALYZING THE MARKET FOR SIMILAR PROPERTIES. A MAJOR PREMISE OF THE.
Farmland Values and Leasing Key Questions Chapter 20 §What determines the value of farmland? §What are the advantages and disadvantages of owning vs. leasing?
Farm Management Chapter 20 Land Control and Use.
Chapter 07: Single Family Housing: Pricing, Investment, and Tax Considerations McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All.
The traditional structure of farm production and farm market can each be described in terms of a single identifying characteristic; product and production.
© 2009 by South-Western, Cengage Learning SAMIRLANDER Chapter 19.
©2011 Cengage Learning. Chapter 10 COMMERCIAL AND INDUSTRIAL MARKETS ©2011 Cengage Learning.
© Mcgraw-Hill Companies, 2008 Farm Management Chapter 1 Farm Management in the Twenty-First Century.
Chapter 23 – Policies that lower the price of food by increasing supply.
©2011 Cengage Learning. Chapter 1 INTRODUCTION TO REAL ESTATE ECONOMICS ©2011 Cengage Learning.
Direct Government Payments and Agricultural Land Values: Alabama in Perspective Charles Barnard Economic Research Service The views expressed in this presentation.
Unit 5 Tertiary Activity Chapter 14 (text). Introduction Tertiary Activity: Involves service industries, which provide services for people. Ex. Doctor,
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER7CHAPTER7 CHAPTER7CHAPTER7 Single Family Housing: Pricing, Investment, and.
Real Estate Sales July Mobile & Baldwin County Single Family Residential Homes Sold - Trend DecFebAprJunAugOctDecFebAprJunAugOctNovDecJanFebMarAprMayJunJul.
Land Auction: Year 7 §50 parcels available, 100 acres each §Land is identical to present land §Each parcel goes to the highest bidder §Minimum bid is $2,500.
Unit 5 Tertiary Activity Chapter 14 (text). Introduction Tertiary Activity: Involves service industries which provide services for people. People “serving”
©2011 Cengage Learning. Chapter 5 ©2011 Cengage Learning IMPORTANT ECONOMIC FEATURES OF REAL ESTATE.
Chapter 1 Farm Management in the Twenty-First Century
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