There seems to be quite a bit movement in raw, but platted, residential properties. Recently,161 lots sold in Burleson, and 96 sold in South Fort Worth. Prices are discounted currently, but I am surprised investors still see this as a viable vehicle.
With 90,000 vacant lots on the market, investors know that they may require several years to see a demand increase. There certainly is a reality locally that subdivisions have gone up incredibly quickly. The market is overbuilt, and foreclosures are providing a glut of vacant structures. Thinking about all those poorly built subdivisions on the periphery of the city calls into question the necessity for further subdivisions. Compound that with incredible growth in the condo/urban market around Fort Worth, and it may only add more time justifying vacant lot investments.
I can’t help but wonder if the Trinity River Vision project will further slow a rebound in subdivided land. Many of these investors are paying a premium for the “paper”; or platting and permits that may already be in place. This isn’t to mention existing infrastructure. Seems to me that the last thing Ft. Worth needs is more poorly built subdivisions in Mansfield. Of course, at the end of the day there will always be a value in land.
