Land Banking Takes a Hold of the Florida Real Estate Market

Land banking, the practice of buying and holding land "to sell or build at a later date," has become the new Florida real estate market trend, and according to the experts, this increasingly common practice shows no signs of slowing down.

Investors and speculators are increasingly venturing into North Florida to bank land because they "are afraid that they will never again see land prices as low as $10,000 an acre." The only problem is that finding land for sale on the North Florida real estate market is not easy. Most of the land "has been in families for generations," and in order to buy this much coveted Florida real estate, "you have to know someone."

The longer it takes investors to find land, the higher a price they´ll have to pay. Land banking has created a price surge in this area of the Florida real estate market. Last year, land in North Florida sold for between $2,000 and $3,000 an acre, now it´s selling at four times that much.