Fortune magazine, June 22, 2009 issue has a good article on "Why Farm Land is Hot". Why ETF's are investing today for the long haul on the food and water shortages in our future. From 1960 to 2000 the world went from over one acre of arable land per person to just over a half acre of arable land per person.
Growing populations and the shrinking supply of arable land will be a key focus of humanity as millions starve in the not too distant future. Water in many locations is the key to food production.
Water rights in Nevada are our most valuable resource. Irrigated agricultural land is available and the prices are increasing. Many basins in Nevada are closed to any future additional water rights, the supply side is very limited and will not increase. While demand continues to grow, with or without future housing developments.
We have cattle ranches with live springs filling stock tanks to water the cattle, and the ranch owns those water rights. We have sections of land with irrigation pivots watering grains like wheat and barley, as well as potatoes, and alfalfa. These irrigation pivots are fed from wells on the land and the farmers own those water rights.
Many farmers are willing to pay handsome lease payments to farm this ground, offering good rates of return to investors. You can own a half full strip mall with falling rents and potential future higher vacancy rates, or farm land with water rights.
If you have the means and are still not sure of the future demand, check out what the executives from some the nations largest agricultural companies have to say about the future demand.
Investing in agricultural land requires in-depth knowledge of local regulations, state agencies, soil quality, regional climate data and much more. Professional representation is critical to your investment success.
I have many properties available and each one is unique in use and potential. Call me today to discuss your needs and which property might fit your needs. Nevada Ranch Properties your source for quality agricultural land sales and services.
Chris W. Miller
ERA Brokers Consolidated
Mesquite NV 89027
702- 346-7200
435-862-5951
Mesquite Market Quarterly
Third Quarter 2009
By Chris W. Miller ABR, CRS, GRI
Sales are up and prices are down and falling!
Beware of pending home sales numbers, the conversion rate from pending to actually closed transactions is falling daily as deals blow up. Pending short sales in general are not closing. When you hear pending home sales, it is a misleading indicator.
In Mesquite we actually closed:
Median Price $ Per Square foot
39 Resale Homes $192,400 $113
13 New Homes $208,984 $125
15 Condos $87,500 $77
29 Town Homes $130,000 $88
Total 93 closed sales $150,900 $99
43 of the total 93 were distressed properties.
229 listings went out of the active inventory as failed. Active available listed residential property remained stable at around 400 with over 60% vacant.
221 new listings were added to active and 85 of those were distressed properties, either short sales or bank owned (REO) foreclosures. "Notice of defaults" continue to increase. Between Spet. 1 and Oct. 12 there were 54 NOD's filed in Mesquite, that is 9 per week!
2 vacant lots sold in Calais and averaged $125,000.
No commercial transactions closed. Vacancy remains at historic high rate in all catagories.
The market is averaging around twenty active resale listings at Sun City, but you would never know it since they do not allow signs, period, even inside your own window.
Over 50% of the current pending transactions are distressed properties. The banks are holding more and more real estate as defaults rise and individuals realize they are stuck as well. Unrealized bank losses are mounting as wealth evaporates.
The amount of shadow inventory is impossible to calculate. Based on unlisted bank owned property, defaults and failed listings, the number is far larger than the 400 active listings, maybe double.
Given the future uncertainty in taxation, health care costs, income, asset value growth, cost of living inflation, and home values retiring buyers have become increasingly cautious. The market is mainly being supported by high loan to value government backed FHA loans, and interest rate risk appears far greater than home price increases. Prices continue to fall.
There are seemingly good values available.......Buyer Beware!
Chris W. Miller
ERA Brokers Consolidated
Mesquite NV 89027
702- 346-7200
435-862-5951
Mesquite Nevada Real Estate Market Still on Life Support
If the Mesquite, Nevada real estate market were a patient in the hospital, it is still in ICU. The market remains on life support, plagued by high vacancy, defaults, foreclosures, existing, and new home supply. Builders continue to put downward price pressure on existing home sales with lower pricing and incentives.
Then there is the shadow inventory. The picture is clouded by the bank owned REO properties as the banks fumble with unrealized losses, those toxic assets. Clearing of this segment of the market will be a pivotal point, but it remains unclear as to how many are out there and at what price will they be liquidated. As the banks push these properties into the market prices continue to fall.
The main support in the market is coming from your tax dollars in the form of first time home buyers tax credit, and high loan to value government backed loans. Cash buyers and investors are nibbling around the edges, but remain tight fisted and cautious.
The next few quarters will bring more competitive pressure to the market from banks, builders, distressed sellers, and short sales. Prices should get even better for buyers willing to be patient.
Recovery will be hampered by new tighter lending regulations being developed and implemented at this time. It appears excessive leverage of debt will not be allowed.
Clearly there has been a shift within the consumers and the world as to how they view leverage and debt. Affordability will be high on the radar screen of all.
Remember the market cheer leaders have their own motives and agenda.
Buyer beware continues to be the smart buyers maxim.
Chris W. Miller
ERA Brokers Consolidated
Mesquite NV 89027
702- 346-7200
435-862-5951
Interested in the future of Real Estate development and agribusiness in Nevada?
Look closely at the water supply. Look closely at the water rights for sale.
Southern Nevada Water Authority is planning a 327 mile pipeline to bring more water to the Las Vegas Valley at a cost of 3.5 billion dollars. This fact alone should tell you something about the available supply.
Whether it is climate change, normal drought, or increased demand, the future for water's value has only one way to go. One thing is certain, we can not live with out it. Water rights in Nevada and the Southwest in general are going to be in the news more and more as demand strains supply.
Some say water will be more valuable than oil to future generations. At the most basic level it already is.
Nevada Water Resources is sponsoring a dinner September 22, 2009, "Water Crisis in California: Challenges Faced by Metropolitan Water District to Adapt to Long-term Water Curtailments".
The term "prior appropriation" when it comes to water rights in Nevada could become very meaningful to those who may be asked to turn off the pumps. The State Engineers Office states it this way;
Nevada's first water statute was enacted in 1866 and has been amended many times since then. Today, the law serves the people of Nevada by managing the state's valuable water resources in a fair and equitable manner. Nevada water law has the flexibility to accommodate new and growing uses of water in Nevada while protecting those who have used the water in the past.
Nevada water law is based on two fundamental concepts: prior appropriation and beneficial use. Prior appropriation (also known as "first in time, first in right") allows for the orderly use of the state's water resources by granting priority to senior water rights. This concept ensures the senior uses are protected, even as new uses for water are allocated.
Irrigated Farm Land and Ranching operations in Nevada generally own their water rights. Farm and Ranch properties like Diamond Springs Ranch, Flatnose Ranch, Adams Peak, Eden Valley, and others like the 265 acres in Lincoln County are all opportunities to own water rights.
Areas of the state that are projected to experience explosive growth in the future in Lincoln County Nevada, often referred to as transition land.
If you would like to learn more about Nevada land for sale with water rights, I am here to serve you.
Please call Chris W. Miller at ERA Brokers Consolidated 435-862-5951 or702-346-7200
Chris W. Miller
ERA Brokers Consolidated
Mesquite NV 89027
702- 346-7200
435-862-5951
The option of a slower, freer lifestyle is appealing to many baby boomers.
The future retirees are young and active with many interests. Some prefer club houses, golf courses, casinos, and social clubs. Others have dreams of getting out of town.
Today with modern technology and simple solar orientation a home on a few acres can become a self sustaining lifestyle. A few fruit trees, a garden, these are personally rewarding activities.
In Southern Nevada there are few places for this type of setting. I believe Lincoln County, Nevada is set to explode. Not over night, but there are many who long for this rural self fulfilling lifestyle.
Ninety seven percent of Lincoln County is public owned lands, the private land is scare.
Water rights to develop the land are even harder to come by. Where else can the future growth and demand go within a couple of hundred miles of Las Vegas?
The cooler weather and four seasons offer much better growing conditions, and it is not so hot. This is right out of the old west, check out lincolncountylandmarket.com. There will be public land auctions, BLM land sales in the future in Lincoln County, Nevada.
I met a great lady visiting from Ohio and as we discussed this shift in the minds of a relatively wild generation, she said "we are becoming our parents". Whether they lived through the great depression or grew up hearing about it, they lived their lives more frugally than we have.
For many this lifestyle exposure was when they went to visit grandparents. Clearly this new environment with horse barns, solar reliance, hen houses and independence will be a life changing event. For longtime city dwellers, a whole foods type of back to the earth lifestyle change.
Off the grid is a worthy goal. Technology in solar applications is getting lots of attention and government money. Greater efficiency is being achieved all the time.
General self reliance and a greater lack of dependence on the outside world a desirable and worthy as well. Maybe we are becoming our grandparents!
Flatnose Ranch is an awesome working hay farm with a rich history, at 1200 acres it is prime transition land. Located ten miles East of Pioche, Nevada, adjacent to Echo Canyon State Park and mostly surrounded by public lands. With eight wells and over 2600 acre feet of water rights, at 5000 feet above sea level, Flatnose has all the makings of rural retirement community.
If you did not have spending $20 million in mind then maybe a 256 acre old homestead with over 1000 acre feet of water rights in Lincoln County priced at $1,950,000. It is all about the water. There are number of larger working irrigated farms available, if farming for a real living is more your style.
I would be very interested in your comments on these ideas. Would you live on a small farm?
For more information about irrigated Nevada farm and ranch land with water rights visit nevadaranchproperties.com
Chris W. Miller
ERA Brokers Consolidated
Mesquite NV 89027
702- 346-7200
435-862-5951
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Mesquite Nevada Real Estate, 32+ Years Real Estate, Experience you can trust. Nevada farm and ranch land with water rights, irrigated land, cattle ranches, agricultural land. Market reports available
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