Prices Steady, Sales Dip in Rural Land Market

SW Wisconsin Land Market Update

Land prices held firm during the 1st quarter 2017 in Southwest Wisconsin while the number of sales declined slightly when compared to the same time period a year ago. The average price per acre for the entire region was $3,332.

Land Market Update blog post image 1st qtr 17

Current Market Characteristics

  • Prices Steady

While the housing market continues to experience rising prices, the land market on average has held fairly firm on prices since midway through 2015.

  • Only about 60% of Offers are Successful

I’ve seen this trend in my business for about 6 months now and there are two reasons for this. First, competing offers are quite common and when that happens only one offer can be accepted while the others will fail. Second, overpriced properties are losing out. When buyers are submitting offers on properties, they are at the buyer’s perceived value range regardless of list price. When the seller values the property differently, the offer fails.

  • Larger parcel sizes are selling

More acres sold during the 1st quarter than any other quarter in the last year. 2,852 acres sold in 29 transactions for an average parcel size of 98 acres. Strong demand continues for nice properties 40-80 acres, although larger properties that are priced fairly get a lot of attention.

  • Spring selling season

After a fairly calm and steady fall/winter season, Spring has brought a flurry of activity. This is an advantageous time for potential sellers to put properties on the market.

1st Quarter 2016 vs. 1st Quarter 2017

Here’s a look at land sales by county in SW Wisconsin:

Grant County
4 tracts of land sold during the 1st quarter 2017 (involving 710 acres) compared to 5 sales during the 1st quarter of the previous year (involving 288 acres). The average price per acre was $3,773 compared to $3,136 a year ago; an increase of 20%.

Iowa County
4 tracts of land sold during the 1st quarter 2017 (involving 647 acres) compared to 2 sales during the 1st quarter of the previous year (involving 94 acres). The average price per acre was $4,677 compared to $4,885 a year ago; a decrease of 4%.

Lafayette County
3 tracts of land sold during the 1st quarter 2017 compared to 0 sales during the 1st quarter of the previous year. The average price per acre was $3,892 compared to $3,475 (carried over from 4th quarter 2015); an increase of 12%.

Sauk County
4 tracts of land sold during the 1st quarter 2017 (involving 229 acres) compared to 15 sales during the 1st quarter of the previous year (involving 948 acres). The average price per acre was $3,526 compared to $3,684 a year ago; a decrease of 4%.

Vernon County
6 tracts of land sold during the 1st quarter 2017 (involving 365 acres) compared to 2 sales during the 1st quarter of the previous year (involving 77 acres). The average price per acre was $2,737 compared to $2,439 a year ago; an increase of 12%.

Crawford County
4 tracts of land sold during the 1st quarter 2017 (involving 351 acres) compared to 3 sales during the 1st quarter of the previous year (involving 211 acres). The average price per acre was $2,696 compared to $2,532 a year ago; an increase of 6%

Richland County
4 tracts of land sold during the 1st quarter 2017 (involving 371 acres) compared to 5 sales during the 1st quarter of the previous year. The average price per acre was $2,839 compared to $3,122 a year ago; an decrease of 9%.

For Landowners

If you would like a more detailed land market report for your area (free)*, visit www.LandMarketReport.com for instructions on how to order.

Averages are just guidelines

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 rural land market in Southwest Wisconsin, begin your search here: Southwest-Wisconsin-Real-Estate.com

*Free Land Market Reports are available to landowners for these SW Wisconsin Counties: Grant, Lafayette, Iowa, Sauk, Richland, Crawford, & Vernon
*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was sourced 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.

One response to this post.

  1. […] Read more by First Weber’s Rural Property Pro, Jay Frazier   Prices Steady, Sales Dip in Rura… […]

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