house price vs. land price.

House price determines land price, instead of the other way around. Lots of houses in FL/NV/AZ are selling below construction costs. Builders just do not build in those scenarios. 

 

Land is like a call option on a house already built. When house price is below replacement/construction cost, the implied land price is close to zero. In option's term, right now land in FL/NV/AZ is deeply OTM.

 

The reasoning below makes no sense. 

"今年北京市成交的一些地块的价格都比较高，由于开发商不会赔钱卖房子，因此在地价仍然上涨的情况下，未来北京市的房价仍然会涨。"

 

Just my 2c.

所有跟帖： 

• OTM是啥意思啊？ -小心翼翼的小地主- ♀ (0 bytes) () 08/16/2013 postreply 05:08:56

• Out of The Money - I guess. -quantnj- ♀ (0 bytes) () 08/16/2013 postreply 05:49:21

• Out of The Money 又是啥意思？ -小心翼翼的小地主- ♀ (0 bytes) () 08/16/2013 postreply 06:37:22

• if you build now (exercise the option) -njrookie- ♂ (119 bytes) () 08/16/2013 postreply 08:13:30

• really? 地价怎么也不会变成0的吧？ -破烂熊- ♀ (27 bytes) () 08/16/2013 postreply 05:50:16

• It is an option -njrookie- ♂ (56 bytes) () 08/16/2013 postreply 08:12:23