Remember when junky (no water, no power, no cactus, no access) little (40ac) pieces of desert used to sell for $1,000/ac at the bottom of every cycle? And then rise to $2,000, $5,000 and even $7,500 at or near the top? Well, the last top for parcels like this got into the teens, twenties and even thirties! Which would make it seem that a “bottom” of $1,000/ac ain’t so hard to achieve.
But no – it’s been TEN YEARS since the top of the last cycle, and for most of that time there has been no bottom. Any orderly market needs an ask AND a bid; we’ve been operating without any bids at all, so no market, no bottom.
Actually, I’ve been waiting patiently to see a return to a $1,000 floor under junk dirt. Are we there yet? No, not at all, even though this piece sold for well more than that. Maybe $3K is the new $1k. (Actually, this piece does has good access and power.) But we are starting to see some of these journeyman pieces that follow this pricing curve every cycle actually transacting again. Good news. I guess.
DATE: February 12, 2016
SELLER: J AND J PROPERTY HOLDINGS LLC (Jack Evans, Phoenix AZ)
BUYER: George Nolan (Surprise, AZ)
ADDRESS: E of NEC Hanna & La Palma Rds, Eloy AZ
SIZE: 40ac mol
PRICE: $125,000 cash ($3,125/ac)