Land prices are tied to wages. Wages and employment goes down, value of land goes down. Unless the Fed starts buying up land directly, or using REITs.
> Unless the Fed starts buying up land directly, or using REITs.
This is happening. The Fed is buying mortgage backed securities.
In other words: the Fed is buying real estate.
It depends how much of that $6T lands in the hands of people buying land (in the near future).
If there were no worry of a recession, then land and other asset values would increase. The $6 trillion is meant to offset possible deflation and keep inflation on course for 2%.
I agree. Individuals might not be able to afford land. But large corporations will definitely be able and more than willing to.
Apple won't buy up a lot of residential real estate.
Needs to end up in people's pockets for land prices to go up.
Because much of the "value" presently seen is speculative, and there are many reasons not to be bullish for the next couple of years.