(Letter to: Franklin, Warren, Lincoln, Pike, Callaway, Audrain, and Montgomery County Landowners)
(Summary of 2001)

Small Tracts - (5 - 20 Acre within 60 miles of St. Louis) From January through August demand was strong. However, buyer interest weakened during the last quarter of the year. Expect demand to be favorable during the second and third quarter of 2002.

Development Land - Demand was favorable in St. Charles, Lincoln, Franklin, and Warren Counties. But during the last quarter of 2001, demand weakened. In a few occasions, developers "walked" from properties they were scheduled to close. The weak market is temporary and will get strong during the second quarter.

Hunting and Recreational Land - Supply of good hunting land was less than the previous year. Top hunting land in Callaway and Montgomery Counties sold from $900 - $1,000/ac. The price decreased below $900.00 per acre when the size increased about 150 acres. The strong market will continue into 2002.

Farm Land - Prices of farms purchased by farmers and investors remained unchanged. On the other hand, purchases by "exchange buyers" weaken from a year ago. ("Exchange Buyers" - Those who have enter into a tax-deferred exchange to postponed capital gains tax) The "exchange buyer" was: (1) not been able to sell their development property, (2) decided to buy land closer to future development rather than farm land, or (3) took the cash and paid the taxes. Expect land prices to remain steady through 2002.

Is now a good time to sell? Land in "high demand" area, priced right, and marketed properly will sell for a strong price. Most land buyers are business and professional people who are not affected by the down turn in the economy. They have the cash and/or the ability to borrow the cash to buy land. They want value for their dollar! There may be a recession in the economy, but not in Missouri land!!