The average price per meter is the key metric we observe to decide levels of mainland supply. It takes account of all resident-to-resident sales per day, but excludes a number of data items such as zero value sales (when friends swap land around), Governor Linden sales (including Auctions themselves) and all private estate sales.
We also measure sales by groups and those by individuals separately although at the moment the average price for both is similar (group sales being as much as L$1 per meter lower on average).
It will be no secret to those that have bought or sold land recently, that the average price of mainland has been falling. In 2007 we managed the price down slowly from a high figure of L$12 per meter to a more reasonable L$6 to L$8. It then rose a little as we reached March of this year before falling consistently since then. In recent days we have seen it dip below L$6 per meter which we feel is a little low.
There are a number of factors behind this recent drop, not least the large number of Openspace regions sold through the new Land Store and the changes in island pricing. Of course the supply of new Mainland at auction is another factor.
At Linden Lab, we respect the investments you make in Second Life land and are sensitive to price fluctuations related to our auctions of new land. To allow the market to absorb the land recently added to the grid, we will be suspending whole region auctions for the next four weeks after which we will review the situation again (on or around the 11th July).
We will, however, be continuing to recycle the smaller abandoned parcels via the auctions, and you may see more of those plots becoming available than usual. As the next few weeks go by we will continue to keep you informed via the blog.