Land Market Stable Despite Harsh Winter: SW Wisconsin Land Sales Update

For most of us harsh winter weather means staying indoors as much as possible, but land buyers generally weren’t deterred by our record setting cold winter during the 1st quarter. SW Wisconsin land transactions were nearly on par with last year’s 1st quarter numbers and average prices remain stable at nearly $3200 per acre.

SW Wisconsin Land Price Trends 2012 - 2014

Here are a few specific highlights:

  • Grant County showed the most sales with 7 completed transactions and an average $/acre increase of $603 over 4th quarter 2013. Approximately 65% of the acreage sold was tillable farmland.
  • Sauk County completed half as many sales as the previous quarter but realized an average increase of $246/acre ending up at $3019/acre.
  • Richland County had a very active 4th quarter in 2013 so experienced a drop in total sales but an increase in average prices to $2412/acre for the 1st quarter.
  • Vernon County seems to be the only SW Wisconsin County affected much by the season with only 1 transaction closed amounting to only 23 acres.

SW Wisconsin Rural Land Sales 6 Month Report

October 1, 2013 through March 31, 2014

Grant Iowa Lafayette Sauk
4th Qtr 1st Qtr 4th Qtr 1st qtr 4th Qtr 1st Qtr 4th Qtr 1st Qtr
# of sales* 6 7 5 2 0 2 8 4
# acres 426 429 388 148 0 185 540 226
woods 171 57 312 60 0 11 303 102
tillable 222 279 45 47 0 138 206 52
pasture 30 91 30 30 0 14 20 72
wetland 0 1 1 10 0 20 9 0
avg $/acre $4,313 $4,916 $3,441 $3,012 $4,708 $3,020 $2,773 $3,019
Vernon Crawford Richland TOTAL
4th Qtr 1st Qtr 4th Qtr 1st Qtr 4th Qtr 1st Qtr 4th Qtr 1st Qtr
# of sales* 3 1 8 4 11 3 41 23
# acres 108 23 489 309 785 217 2736 1537
woods 95 6 379 199 661 177 1921 612
tillable 8 15 75 104 114 40 670 675
pasture 4 0 32 3 10 0 126 210
wetland 0 0 2 2 0 0 12 33
avg $/acre $2,304 $3,397 $2,731 $2,591 $2,303 $2,412 $3,225 $3,195


Buyers and sellers need to be aware that average sale prices are only a general guideline. An on-site property evaluation by an experienced land agent is needed to give you an accurate picture of what a property is worth in the current market. To learn more about the current land market in Southwest Wisconsin, begin your search here: www.Southwest-Wisconsin-Real-Estate.com

*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was taken from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 20 acres, residential, and commercial land sales were not included. Acreage breakdown may vary due to land remnants and other factors.

SW Wisconsin Land Sales Update: Prices Hold Steady in 4th Quarter

Throughout the first three quarters of 2013 the average land sale price in SW Wisconsin made steadfast gains increasing 27.8% from January through September. Now that the 4th quarter has ended we can say that the land market finished the year on a much higher note than it began.

2012-2013 Land Price Comparison

In the 4th quarter of 2013 we saw the average price-per-acre slip about 2% from 3rd quarter ending up at $3,225. The slight dip in price could be due to less farmland being sold which usually has been bringing a higher price-per-acre than other types of land. Farmland comprised about 24% of the total acreage sold in the 4th quarter compared to the norm of 30-35%. This change in buyer activity may be influenced by lack of farmland availability, interest rates, or the lower commodity prices in the second half of 2013.

I think it is noteworthy that the number of transactions completed in the 4th quarter increased 46% over 3rd quarter and total acres sold increased 33% all while prices held mostly steady. This hike in buyer activity without losing the price gains made in the first three quarters suggests the southwest Wisconsin rural land market is pretty healthy going forward into 2014.

SW Wisconsin Rural Land Sales 3rd & 4th Quarters 2013

Grant Iowa Lafayette Sauk
3rd Qtr 4th Qtr 3rd Qtr 4th Qtr 3rd Qtr 4th Qtr 3rd Qtr 4th Qtr
# of sales* 6 6 4 5 2 0 5 8
# acres 513 426 291 388 215 0 274 540
woods 201 171 186 312 75 0 212 303
tillable 279 222 95 45 85 0 61 206
pasture 33 30 8 30 55 0 0 20
wetland 0 0 0 1 0 0 0 9
avg $/acre $3,769 $4,313 $2,970 $3,441 $4,708 $4,708 $3,845 $2,773
Vernon Crawford Richland TOTAL
3rd Qtr 4th Qtr 3rd Qtr 4th Qtr 3rd Qtr 4th Qtr 3rd Qtr 4th Qtr
# of sales* 1 3 3 8 7 11 28 41
# acres 21 108 263 489 481 785 2058 2736
woods 21 95 182 379 376 661 1253 1921
tillable 0 8 33 75 73 114 626 670
pasture 0 4 43 32 26 10 165 126
wetland 0 0 5 2 0 0 5 12
avg $/acre $2,380 $2,304 $2,826 $2,731 $2,564 $2,303 $3,295 $3,225


Buyers and sellers need to be aware that average sale prices are only a general guideline. An on-site property evaluation by an experienced land agent is needed to give you an accurate picture of what a property is worth in the current market. To learn more about the current land market in Southwest Wisconsin, begin your search here: Southwest-Wisconsin-Real-Estate.com

*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was taken from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 20 acres, residential, and commercial land sales were not included. Acreage breakdown may vary due to land remnants and other factors.

SW Wisconsin Land Sales Update: Prices Continue To Climb

The rural land market in SW Wisconsin made another moderate price gain during the third quarter increasing $202/acre over 2nd quarter to average $3,295 per acre. The average price-per-acre for the entire region increased 6.5% over 2nd quarter to make for an overall increase of 27.8% since December. If prices continue this trend through the 4th quarter, the land market could attain pre-bust prices by the end of the year.

SW Wisconsin Land Sales Price Trends 3rd Quarter 2013

There continues to be lower inventory than we’ve been accustomed to across most of the region especially in Lafayette County. Because of the law of supply and demand, this generally helps to drive prices upward. High commodity prices have been another factor driving farmland prices to all-time highs. It will be interesting to see how the recent drop in corn prices affects this portion of the market in the 4th quarter and beyond.

SW Wisconsin Rural Land Sales 2nd & 3rd Quarters 2013

Grant Iowa Lafayette Sauk
2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr
# of sales* 10 6 5 4 0 2 11 5
# acres 1297 513 347 291 0 215 745 274
woods 844 201 119 186 0 75 337 212
tillable 327 279 197 95 0 85 335 61
pasture 117 33 26 8 0 55 62 0
wetland 0 0 2 0 0 0 8 0
avg $/acre $2,967 $3,769 $3,270 $2,970 $4,630 $4,708 $3,494 $3,845
Vernon Crawford Richland TOTAL
2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr
# of sales* 3 1 3 3 7 7 39 28
# acres 142 21 425.7 263 816 481 3772.7 2058
woods 115 21 288.9 182 514 376 2217.9 1253
tillable 5 0 136.8 33 219 73 1219.8 626
pasture 22 0 0 43 58 26 285 165
wetland 0 0 0 5 0 0 10 5
avg $/acre $2,381 $2,380 $2,316 $2,826 $2,591 $2,564 $3,093 $3,295

 
Buyers and sellers need to be aware that average sale prices are only a general guideline. An on-site property evaluation by an experienced land agent is needed to give you an accurate picture of what a property is worth in the current market. To learn more about the current land market in Southwest Wisconsin, begin your search here: Southwest-Wisconsin-Real-Estate.com

*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was taken from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 20 acres, residential, and commercial land sales were not included. Acreage breakdown may vary due to land remnants and other factors.

Enter your email address to follow this blog and receive notifications of new posts by email.

SW Wisconsin Land Sales Update: Prices Increase Again

Six of the seven SW Wisconsin counties saw an average price increase from 1st quarter to 2nd quarter this year putting the land market recovery on fairly firm ground. The average price-per-acre for the entire region is up 20% from December when we saw the market bottom out.

 

Land Price Trends 2nd Quarter 2013 CHART

 

Land market indicators predict that prices will continue their moderate climb this year. The number of transactions however has been on the decline. First quarter transactions were down 50% over the same quarter in 2012 and it’s the same story for 2nd quarter when transactions were down 49% for the region. The excess inventory of 2012 is gone and now lower inventory is helping to drive the improved market upward.

 

Southwest Wisconsin 1st & 2nd Quarter 2013

Grant Iowa Lafayette Sauk
1st qtr 2nd qtr 1st qtr 2nd qtr 1st qtr 2nd qtr 1st qtr 2nd qtr
# of sales* 2 10 4 5 5 0 3 11
# acres 179 1297 147 347 244 0 107 745
woods 99 844 102 119 46 0 101 337
tillable 74 327 24 197 150 0 6 335
pasture 0 117 2 26 50 0 0 62
wetland 0 0 19 2 0 0 0 8
avg $/acre $2,622 $2,967 $3,174 $3,270 $4,630 $4,630 $2,132 $3,494
Vernon Crawford Richland TOTAL
1st qtr 2nd qtr 1st qtr 2nd qtr 1st qtr 2nd qtr 1st qtr 2nd qtr
# of sales* 1 3 5 3 5 7 25 39
# acres 100 142 336 425.7 408 816 1521 3772.7
woods 75 115 231 288.9 302 514 956 2217.9
tillable 25 5 96 136.8 86 219 461 1219.8
pasture 0 22 20 0 20 58 92 285
wetland 0 0 0 0 0 0 19 10
avg $/acre $2,231 $2,381 $2,579 $2,316 $2,537 $2,591 $2,844 $3,093

 

Buyers and sellers need to be aware that average sale prices are only a general guideline. An on-site property evaluation by an experienced land agent is needed to give you an accurate picture of what a property is worth in the current market. To learn more about the current land market in Southwest Wisconsin, begin your search here: www.RuralPropertyPro.com

*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was taken from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 20 acres, residential, and commercial land sales were not included. Acreage breakdown may vary due to land remnants and other factors.

SW Wisconsin Land Sales Update: Prices On The Rise

The first quarter of 2013 is now history and spring has finally made a weak appearance.  If you recall, last winter (2011-2012) was the year of unwinter and strong land sales numbers continued through the normally slow period. 50 transactions were completed in the first quarter of 2012 with an average price per acre of $3,322.  This year has been quite the opposite with snow removal being an almost daily activity and winter loathed to leave when the calendar said it should.  The number of transactions for 1st quarter reflects a more normal Wisconsin winter, but when compared to last year’s unusual circumstances they appear weak.

SW WI 2013 1st Quarter Stats

Despite the price drop shown here, it’s almost certain the land market is in better shape than a year ago.  You can see this when taking an overall look at the price trends for the past 12 months.

One thing I consider when I see a sale price spike (like in 1st quarter 2012) is the amount of tillable acreage that was sold. Currently, tillable land (cropland/farmland) is generally bringing a higher price per acre due to the faster ROI (return on investment) than other types of rural land. While tillable acreage sold in recent quarters hovered right around 30% of the total acreage, in the 1st quarter of 2012 the tillable acreage sold was 47% of the total. This appears to be the dominant factor influencing the price hike at that time. Throughout 2012 the average price dropped even as buyer activity increased. As a result of sellers becoming more motivated and buyers taking advantage of record low interest rates, a lot of excess inventory was cleared out making way for market improvement.

Land Price Trends '12-'13

From the looks of things where they are right now, 2012 was the time to buy at the bottom. All factors point to slowly rising prices this year and there are even a few indications that a seller’s market may be around the corner.

Buyers and sellers need to be aware that average sale prices are only a general guideline. The demand and sales price for any particular property will most likely vary up or down (often substantially) from the averages shown. Location within a county will affect price as will soil types, zoning, road access, government programs, water, timber value, easements, rental value, lay of the land, potential building sites, access to utilities and various other factors. Of course, a home, out buildings or other improvements will also affect the value.  An on-site property evaluation by an experienced land agent is needed to give you an accurate picture of what a property is worth in the current market.

To learn more about the current land market in Southwest Wisconsin, begin your search here: RuralPropertyPro.com

For those that enjoy statistics, here’s the breakdown by county:

GRANT 1st   Quarter LAFAYETTE 1st   Quarter
2013 2012 2013 2012
# of sales 2 8 # of sales 5 3
total acres   sold 179 686 total acres sold 244 228
Tillable acres 74 272 Tillable acres 150 207
Wooded acres 99 269 Wooded acres 46 21
Pasture acres 0 138 Pasture acres 50 0
Wetland acres 0 1 Wetland acres 0 0
$/acre $2,622 $2,938 $/acre $4,630 $5,962
RICHLAND 1st Quarter SAUK 1st Quarter
2013 2012 2013 2012
# of sales 5 7 # of sales 3 13
total acres   sold 408 565 total acres sold 107 620
Tillable acres 86 139 Tillable acres 6 286
Wooded acres 302 412 Wooded acres 101 290
Pasture acres 20 14 Pasture acres 0 92
Wetland acres 0 0 Wetland acres 0 6
$/acre $2,537 $2,626 $/acre $2,132 $3,198
CRAWFORD 1st Quarter VERNON 1st Quarter
2013 2012 2013 2012
# of sales 5 3 # of sales 1 10
total acres   sold 336 184 total acres sold 100 1215
Tillable acres 96 30 Tillable acres 25 722
Wooded acres 231 118 Wooded acres 75 491
Pasture acres 20 27 Pasture acres 0 0
Wetland acres 0 0 Wetland acres 0 2
$/acre $2,579 $2,071 $/acre $2,231 $2,591
IOWA 1st Quarter TOTAL for all 7 COUNTIES 1st Quarter
2013 2012 2013 2012
# of sales 4 6 # of sales 25 50
total acres   sold 147 436 total acres sold 1521 3934
Tillable acres 24 200 Tillable acres 461 1856
Wooded acres 102 168 Wooded acres 956 1769
Pasture acres 2 84 Pasture acres 92 355
Wetland acres 19 2 Wetland acres 19 11
$/acre $3,174 $3,871 Avg $/acre $2,844 $3,322

*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was taken from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 20 acres, residential, and commercial land sales were not included. Acreage breakdown may vary due to land remnants and other factors.

Real Estate Dreams

Recently, I had a lady tour my website and fill out a form which said:

“To be honest, I have no current plans to buy, just like to look and dream!”

That started me thinking about real estate and how it’s uniquely tied to virtually everyone’s dreams. Whether we’re looking for a New York apartment with an additional one hundred square feet or a thousand acres of prime hunting land, nearly everyone has a “real estate dream”.

Real Estate Dreams

The interesting thing is that our real estate dreams change as we move through life. The pride of ownership in the little starter home begins to dim as children arrive and we feel cramped. At that point, our dream property may just be something with 3 bedrooms, 2 baths and a fenced yard for the family pet. As time progresses the real estate dream continues to mature and maybe a house on the lake or a hunting property is the current goal. Retirement often brings downsizing and the house on the lake may become the permanent residence with the family home being put on the market. And so it goes. Changes occur throughout our life, but one of the things that remain constant is the real estate dream.

The great thing about real estate is that when your dream property no longer fits your needs, it is still someone else’s perfect place. I’ve found over the years that no matter how many buyers turn up their noses at a property, there will always be someone that simply loves it! Also, unlike your 10 year old car that was the must-have when you bought it but is worth little today, real estate remains a great investment.

Dream Home

The bottom line is that real estate dreams are what make my chosen profession challenging yet so rewarding. The search for the dream property for some of my clients has taken a year or more and at times the dream has changed over the course of the search. Just as a hunting guide works hard for a client to locate and collect a trophy, I work hard for my loyal clients to find and acquire their trophy property. It’s a long road at times but when it’s finished, it’s very rewarding to be able to share their happiness.

So as I told the lady viewing my website, I think everyone has a dream property so please dream away and if I can be of assistance in the future, just let me know.

“You are never too old to set another goal or to dream a new dream.” -C.S.Lewis

If your real estate dream includes property in southwest Wisconsin, begin your search here: www.Southwest-Wisconsin-Real-Estate.com

By: Jay Frazier

SW Wisconsin Land Sales Update: 4th Quarter Sales Up 12%

The year finished strong with a large number of transactions closing in the 4th quarter.  Total land sales in SW Wisconsin were up 12% compared to the 4th quarter of 2011 with Iowa County realizing the largest sales increase.  Over 1,000 acres changed hands in Iowa County between October 1st and December 31st.  The average sold price-per-acre dropped significantly in conjunction with this big jump in sales for Iowa County (from $3892 in the 3rd quarter down to $3093).  Since the tillable to wooded ratio remained fairly constant it would appear that Iowa County prices are aligning themselves more closely with the rest of SW Wisconsin.  Buyers took advantage of this trend as evidenced by the high number of transactions and acres sold.

4th Qtr Land Sales Chart

Prices were fairly even across the region with an average price per acre of $2546.  However, when comparing this to the average price per acre of the last quarter in 2011, it is down by almost 12%.  This continues the downward trend we saw in the 3rd quarter and was influenced by several factors.  Sellers were quite motivated to close in 2012 due to the uncertainty of capital gains tax changes for the New Year.  Also, buyer demand held fairly steady for properties priced near the current market value.

4th Quarter 2012 Land Prices Chart

The land price decline through 2012 taken together with the increase in sales would indicate the land market is still in recovery mode.  With the exception of farmland, average land prices in SW Wisconsin still struggle to make significant gains.  On the positive side, the higher transaction numbers in 2012 helped reduce a lot of excess inventory which clears the way for building stronger buyer demand and higher per acre prices in 2013.

Below is a summary of land sales by county (data from SCWMLS & WiREx):

GRANT 4th   Quarter LAFAYETTE 4th   Quarter
2012 2011 2012 2011
# of sales 7 4 # of sales 3 6
total acres sold 335 406 total acres sold 383 864
Avg $/acre $2,313 $2,921 Avg $/acre $2,765 $4,283
RICHLAND SAUK
# of sales 7 10 # of sales 6 5
total acres sold 367 1082 total acres sold 349 127
Avg $/acre $2,588 $1,941 Avg $/acre $2,729 $3,175
CRAWFORD VERNON
# of sales 3 5 # of sales 9 8
total acres sold 216 272 total acres sold 618 417
Avg $/acre $2,576 $1,846 Avg $/acre $2,420 $2,544
IOWA TOTAL for all 7 COUNTIES
# of sales 11 3 # of sales 46 41
total acres sold 1016 145 total acres sold 3284 3313
Avg $/acre $3,093 $4,328 Avg $/acre $2,641 $3,005

To learn more about the current land market in Southwest Wisconsin, begin your search here: Southwest-Wisconsin-Real-Estate.com

All data was taken from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 15 acres, residential, and commercial land sales were not included. Acreage breakdown may vary due to land remnants and other factors.
Follow

Get every new post delivered to your Inbox.

Join 460 other followers

%d bloggers like this: