When people are talking about the real estate market, they are typically referring to the overall national real estate numbers such as home prices, home sales, foreclosure activity, etc. Although these reports may often delve deeper into the real estate numbers for specific cities or metro areas, there is typically little information about more specific real estate niches - specifically farms and luxury real estate.
Prices for Farmland Rises Significantly
When the real estate market “bubbles,” it essentially means that home prices continue to rise and are eventually inflated to a point where it “pops.” The result can be very insignificant or can be disastrous (which is what happened with the real estate market crash).
Apparently, there is a pending bubble when it comes to farms and farmland.
According to TIME, the price of farmland throughout the country has doubled in the last ten years with predictions that it will rise another 10% in 2013 alone. With farmland appearing to be a great investment opportunity, many investors are flocking to buy farms and are therefore inflating the price of farmland even more. If this continues throughout the future, there will eventually be a pop.
However, the good news is that this bubble is not even close to as serious as the real estate market crash that the nation just experienced. However, those in the agriculture business may experience some effects if the situation is not rectified.
Prices for Luxury Real Estate are Audacious
Although the real estate market is making slow, but steady progress toward recovery, apparently those in luxury real estate are being bold in their property listings when it comes to pricing. In fact, some of the new home prices are breaking records—that is they are even exceeding prices of the pre real estate market crash levels.
People throughout the country - New York and Miami in particular - are experiencing ridiculously high prices for high-end properties.
However, apparently these property owners are having problems unleashing these properties since those with the highest incomes in these cities are taking advantage of the current real estate market and are having properties designed specifically to meet their needs.
Either way, it is interesting to see luxury real estate home prices increasing so much despite the real estate market’s current state of recovery.