3rd Quarter Interval in Strong Land Market Year

SW Wisconsin Land Market Update

The summer months are typically slower for rural real estate and this year is no exception. In southwestern Wisconsin the number of transactions during the 3rd quarter of 2017 are down when compared to 2nd quarter but dead even compared to the same time period a year ago. The average price per acre for 3rd quarter is down slightly compared to the same quarter last year. Typically, sale prices dip during the 3rd quarter reflecting a shift in land types sold (more farmland changes hands during the 1st half of the year). The average price per acre for 3rd quarter this year was $3,055/acre.

Land Market Update blog post image

Current Market Characteristics

  • Sellers should catch this wave

I’ve been a real estate agent since 2004 and have never seen a year with so many multiple offers. There just aren’t enough properties on the market to meet buyer demand. Correctly priced properties get a lot of attention and are selling quickly.

  • Prepared buyers win big

Buyers that have their financing lined up and make it a priority to view properties within a few days are those winning the bid. Over half of all offers coming across my desk this year are ending up dead due mainly to the increase of competing offers.

  • Larger parcel sizes are selling

While the number of transactions are the same as last year for 3rd quarter, the total number of acres sold during the 3rd quarter of 2017 increased by 24%. Larger parcels continue to attract buyers this year with the average parcel size sold during 3rd quarter at 84 acres.

  • Prices Steady

Although the stats for 3rd quarter don’t look too exciting, keep in mind that 3 of the 7 counties in the region didn’t have enough sales to establish a firm average. Typically, sales and prices resume “normal” activity in the 4th quarter.



3rd Quarter 2016 vs. 3rd Quarter 2017
Here’s a look at land sales by county in SW Wisconsin:

Grant County
3 tracts of land sold during the 3rd quarter 2017 (involving 180 acres) compared to 1 sale during the 3rd quarter of the previous year (involving 102 acres). The average price per acre was $3,362 compared to $2,173 a year ago; an increase of 54%. This is the largest county in the region with a lot of variation in land type from north to south. The type of land and location within the county are the biggest factors in this price fluctuation.

Iowa County
2 tracts of land sold during the 3rd quarter 2017 (involving 170 acres) compared to 7 sales during the 3rd quarter of the previous year (involving 583 acres). The average price per acre was $2,658 compared to $3,936 a year ago; a decrease of 32%. The major factor influencing this price shift was the type of land sold (52% farmland in 2016, and 0 farmland in 2017) and does not indicate a major market change.

Lafayette County
0 tracts of land sold during the 3rd quarter 2017 compared to 1 sale during the 3rd quarter of the previous year. The average price per acre was $5,739 (carried over from 2nd quarter 2017) compared to $4,688 a year ago; an increase of 22%.

Sauk County
5 tracts of land sold during the 3rd quarter 2017 (involving 369 acres) compared to 6 sales during the 3rd quarter of the previous year (involving 288 acres). The average price per acre was $3,678 compared to $3,253 a year ago; an increase of 13%.

Vernon County
6 tracts of land sold during the 3rd quarter 2017 (involving 718 acres) compared to 5 sales during the 3rd quarter of the previous year (involving 205 acres). The average price per acre was $3,039 compared to $2,502 a year ago; an increase of 21%.

Crawford County
8 tracts of land sold during the 3rd quarter 2017 (involving 644 acres) compared to 2 sales during the 3rd quarter of the previous year (involving 276 acres). The average price per acre was $2,433 compared to $2,628 a year ago; a decrease of 7%

Richland County
2 tracts of land sold during the 3rd quarter 2017 (involving 105 acres) compared to 4 sales during the 3rd quarter of the previous year. The average price per acre was $2,625 compared to $3,084 a year ago; a decrease of 14%.

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 from First Weber’s Rural Property Pro, Jay Frazier […]

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