Investing in Land

At the end of last week, two reports converged to add emphasis to the argument that the economy may be looking up.

First came word from the National Association of Homebuilders that the confidence level of the people who build the homes we live in had moved higher than it has been since last year.  The news is tempered by a still tight credit market and continued foreclosures, but good metrics are a path to the rebound.

Second came just some of that sort of news.  In the U.S., housing starts are up for the first time since last year.  The Commerce Department noted that “(s)tarts of single-family homes rose 14.4% last month to 470,000, the highest level since October. This is the fourth straight increase…”

These two elements of economic activity are at the end of a long line of events that begin with identifying, acquiring and developing the land beneath them.  And there are early signs that the land market is growing more active, too.

It will be best to keep a close eye on just what develops.

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