Professor Elam

Sat Jan 16 2009

I assume the black line is inflation adjusted. The blue line is what is known as a parabolic curve, all parabolas end with a crash.  

The headline is that buyers find bargains on country property. However the correct comment is from A & M REal Estate researcher Charles Gilliland,

The party is over. 

Expect land prices to crash over the next few years back to the nominal line, this is another deflationary trend waiting to happen. 

Deflation is still raging. Our previous post about the number of houses in potential foreclosure can only lead to lower prices. Pizza Hut is advertising any size any toppings just ten bucks. Hamburger chains have rolled out $1 sandwiches. The fellow in Kerrville making pine box caskets is tapping into both deflation and the desire to be more green, but the price drop in caskets is deflationary!

Expect more deflation in the last half of this year as these postponed foreclosures finally start taking place.