Posts Tagged ‘Accredited Land Consultant’

Rural Land Market Ends Year on a High Note

SW Wisconsin Land Market Update

The rural land market finished the year strong with an average price per acre of $3,745 for the SW Wisconsin region. 3,286 acres changed hands; the most sold during a quarter in the last 2 years.

2017 Rural Land Market Review

1st Quarter – 2,852 acres sold in 29 transactions for an average of $3,384/acre

2nd Quarter – 3,137 acres sold in 38 transactions for an average of $3,484/acre

3rd Quarter – 2,186 acres sold in 26 transactions for an average of $3,055/acre

4th Quarter – 3,286 acres sold in 37 transactions for an average of $3,745/acre

Land Market Update blog post image 4th qtr 2017

Current Market Characteristics

  • Competing offers are common

Properties that hit the market with a correct asking price are selling quickly, often receiving multiple offers and selling close to or at full price. Overpriced properties languish on the market, so despite low inventory, buyers are very in tune to current values and not willing to exceed them.

  • Stronger demand for larger parcels

While the number of transactions during the 4th quarter are down from last year, the number of acres sold increased by 19%. Larger parcels continue to attract buyers this year with the average parcel size sold during 4th quarter at 89 acres.

  • Farmland demand is on the rise

43% more farmland acres sold during 2017 compared to 2016. Farmland comprised 34% of the total acres sold in 2017, whereas farmland acres totaled just 29% of the total acres sold during the previous year.

  • Stage is set for a strong 2018

Sellers and Buyers are coming closer together on price. For all land types and parcel sizes in SW Wisconsin, the 2017 list price to sell price ratio was 90% compared to 86% in 2016.
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4th Quarter 2016 vs. 4th Quarter 2017

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

Grant County
3 tracts of land sold during the 4th quarter 2017 (involving 242 acres) compared to 4 sales during the 4th quarter of the previous year (involving 583 acres). The average price per acre was $3,852 compared to $3,759 a year ago; an increase of 2.5%.

Iowa County
5 tracts of land sold during the 4th quarter 2017 (involving 273 acres) compared to 7 sales during the 4th quarter of the previous year (involving 652 acres). The average price per acre was $4,091 compared to $3,686 a year ago; an increase of 11%.

Lafayette County
3 tracts of land sold during the 4th quarter 2017 (involving 608 acres) compared to zero land sales reported during the 4th quarter of the previous year. The average price per acre was $5,119 compared to $4,688 a year ago. (carried over from third quarter); an increase of 9%.

Sauk County
8 tracts of land sold during the 4th quarter 2017 (involving 449 acres) compared to 10 sales during the 4th quarter of the previous year (involving 479 acres). The average price per acre was $4,693 compared to $3,444 a year ago; an increase of 36%. The value of property within several SW Wisconsin counties is significantly influenced by the location within the county as well as the type of land being sold. As a result, the 36% increase shown may not be an accurate reflection of the actual market value increase.

Vernon County
5 tracts of land sold during the 4th quarter 2017 (involving 230 acres) compared to 7 sales during the 4th quarter of the previous year (involving 320 acres). The average price per acre was $2,986 compared to $3,219 a year ago; a decrease of 7%.

Crawford County
6 tracts of land sold during the 4th quarter 2017 (involving 735 acres) compared to 5 sales during the 4th quarter of the previous year (involving 354 acres). The average price per acre was $2,760 compared to $2,671 a year ago; an increase of 3%.

Richland County
7 tracts of land sold during the 4th quarter 2017 (involving 749 acres) compared to 6 sales during the 4th quarter of the previous year. The average price per acre was $3,166 compared to $2,834 a year ago; an increase of 12%.

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.

Wisconsin River vs. Chicago River

By: Jay Frazier

The Wisconsin River @ the Lone Rock bridge; Lone Rock, WI

The Chicago River
@ the Magnificent Mile
Chicago, IL

This week I had the opportunity (not sure that’s the right word)to visit downtown Chicago for a few days. I stayed at the south end of the Magnificent Mile known for its 460 stores, 275 restaurants, 51 hotels, and a host of sightseeing and entertainment spots. It boasts more than 22 million visitors annually so I was just one of the crowd gawking at the craziness.

While this isn’t somewhere I would normally hang out, I’m working on getting my Accredited Land Consultant (ALC) designation through the Realtors Land Institute and doing so requires taking classes. One part of the curriculum is a 3 day class called Land Investment Analysis which is offered in Chicago. It seems strange to take land classes in the ‘windy city’ but there’s a Realtor building there so that’s where we landed.

The big city was definitely a culture shock but it gave me more of an insight as to why people want to invest in rural property. It’s a big change going from a place where there’s not a stop light within 15 miles to a place where you have to wait for a stoplight to tell you to cross the street. There isn’t any on- street parking so most people park their cars in a ramp (at $30. per day) and walk everywhere but the traffic still appears to be endless. Besides nearly everything costing 40% more than I’m used to, the most irritating thing for me was the incessant around the clock emergency vehicles with sirens and horns blaring. Even at 20 stories up in my motel room, they would still wake me up.  Needless to say, after class on Wednesday I was more than ready to head for Southwest Wisconsin.  After 3 days of looking down at the Chicago River I was very happy to see the Wisconsin River framed by the green hills of the Driftless Area. When I got out of my car I heard birds singing and realized I hadn’t heard a birdsong in almost a week!

I’ve always said that you couldn’t pay me enough to live in a big city and I still haven’t changed my mind. It struck me as I traveled how animal rights activists make a big issue out of not penning up cattle and making sure their chickens are “free range” yet are perfectly happy to pen themselves up in a confined space with millions of other people!

To each their own but personally I’ll take the Wisconsin River any day!

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