Whether you’re investing in stocks, funds, real estate, or even fine art, there’s no greater influence on the value of the investment than the supply/demand balance. Supply and demand is a foundation concept in investing.
Simply put, if supply exceeds demand, prices tend to drop because there’s too much investment available; and if demand exceeds supply, prices tend to rise because everyone is clamoring to own the investment.
If you want to know whether an investment has value, consider whether supply or demand is greater.
Here’s why we’re excited about the supply/demand fundamental in vacant residential land for sale in California…
Supply Of Bare Land For Sale In California
On the supply side of the equation, no one is making any more land. The land that’s there is the only land available. On top of that, it’s already owned (either by individuals, corporations, or governments) so the only vacant residential land for sale in California is the land that people choose to sell.
In fact, as land is acquired and developed, it reduces supply. Every single day around the country, vacant residential land is acquired and developed for use – perhaps with the addition of city services and buildings.
Therefore, the supply is limited… and it’s diminishing every day.
Demand of Bare Land For Sale In California
On the demand side of the equation, there isn’t a lot of land that goes on the market. The closer you get to an urban center, the more likely the land is in demand in the near future for development.
But what makes the demand side even more compelling is that it’s not just near-term development that factors into the equation. There are other benefits of owning land (including hunting and fishing on more rural pieces of land).
These two forces – development and recreational use – create ongoing pressure on the demand side of the equation.
You don’t have to be an expert investor to know that the supply/demand fundamentals of vacant residential land for sale in California are very attractive for investment. Whether you plan to buy the land to develop, hold, resell, or even use for your own recreational use, the supply/demand fundamentals indicate that land will continue to be an attractive investment for years to come.