I have always thought that land prices in SL are inflated. It has to be the most expensive web hosting in the world (if not then it's up there). That said, people are buying more land because land prices have been falling due to the open land initiative that dropped the price on water sims.
In a bubble you normally see the price of a scarce commodity skyrocket as more and more people want it. Look at the land bubble in the US a few years ago: Land prices went through the roof until people could no longer afford it, at which point the market collapsed under it's own weight (I'm simplifying because the credit crisis played a role in it, but which one caused the other is a long debate for another thread).
In SL the prices went down first and consumers picked up the slack by buying more land. It looks as healthy to me as more people buying Coca-Cola if the price of it went down. It's a good economy. I still agree with RightAsRain that land prices are outrageous, though.
I have heard from some larger business owners that they have been hurting lately, and I don't know if that is related to this or not. Perhaps people are spending more disposable income on land rather than anatomical parts, clothing and slave collars?
I read the numbers
Tue, 09/30/2008 - 00:44 — Bubblesort Triskaidekaphobia (not verified)I read the numbers differently.
I have always thought that land prices in SL are inflated. It has to be the most expensive web hosting in the world (if not then it's up there). That said, people are buying more land because land prices have been falling due to the open land initiative that dropped the price on water sims.
In a bubble you normally see the price of a scarce commodity skyrocket as more and more people want it. Look at the land bubble in the US a few years ago: Land prices went through the roof until people could no longer afford it, at which point the market collapsed under it's own weight (I'm simplifying because the credit crisis played a role in it, but which one caused the other is a long debate for another thread).
In SL the prices went down first and consumers picked up the slack by buying more land. It looks as healthy to me as more people buying Coca-Cola if the price of it went down. It's a good economy. I still agree with RightAsRain that land prices are outrageous, though.
I have heard from some larger business owners that they have been hurting lately, and I don't know if that is related to this or not. Perhaps people are spending more disposable income on land rather than anatomical parts, clothing and slave collars?