Posts Tagged ‘farmland’

Rural Land Prices Holding Firm

SW Wisconsin Land Market Update

Little has changed in the rural land market during the 2nd quarter of 2016 in Southwest Wisconsin. The number of transactions was up over 1st quarter 2016 from 32 to 42 transactions. The average price per acre rose slightly from 1st quarter; however, the average parcel size came in at just 59 acres. This is quite a bit smaller than a year ago where the average was 102 acres. Smaller parcels tend to sell at a higher dollar per acre than larger parcels, so the general land market appears to be strong with prices holding firm.

Current Market Characteristics

  • Low Inventory Continues

For the past year there have been fewer nice properties on the market. For prime real estate, multiple offers are now fairly common. The stiff competition has triggered a few offers above list price which follows the trend in metro areas where buyers are desperate enough to add escalator clauses to their offers.

  • Prices are inching upward

Four of the seven counties saw an average price per acre increase over 1st quarter. The average price-per-acre went from $3,325 in the 1st quarter of this year to $3,484/acre in the 2nd quarter. When other market factors are figured in, this isn’t much of a gain, but neither is it a loss.

  • Sellers wait and see

The summer months are typically a little slower in the rural land market, but this year the trickle of fresh new listings has almost dried up. The uncertainty of the upcoming national election results might be influencing sellers to hold off. Also, the trends in urban real estate show a hot seller’s market, and some of the property owners I have talked to recently are waiting to list in hopes that this trend will reach the rural markets as well.

  • Buyers searching, waiting

The competition for rural land is heating up a bit. Buyers are actively searching for rural properties, many waiting for something suitable to come up for sale. In most cases they do their research and aren’t bidding on overpriced parcels. Properties priced correctly for the local market are moving quickly.

SW Wisconsin Rural Land Sales 12 Month Review

SW Wisconsin 2015 2015 2016 2016
3rd Quarter 4th Quarter 1st Quarter 2nd Quarter
# of transactions 36 42 32 42
# of acres sold 3670 3377 2296 2481
% of acres tillable 23% 27% 25% 32%
average $/acre $3,308 $3,133 $3,325 $3,484
 …
Avg $/acre by county 2015 2015 2016 2016
3rd Quarter 4th Quarter 1st Quarter 2nd Quarter
Grant $2,339 $3,026 $3,136 $4,352
Iowa $3,451 $3,855 $4,885 $4,131
Lafayette $6,364 $3,475 $3,475 $3,605
Sauk $3,737 $3,570 $3,684 $3,729
Richland $2,382 $2,582 $3,122 $3,088
Crawford $2,549 $2,677 $2,532 $2,185
Vernon $2,337 $2,745 $2,439 $3,296


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

Copy of SW WisconsinLand Market Update

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

*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.

Land Market Strengthens at Close of 2015: SW Wisconsin Land Market Update

After a pause during 3rd quarter, the land market started making headway again during the 4th quarter of 2015 in Southwest Wisconsin.

4th Quarter 2015
The number of transactions was up 16% over 3rd quarter with 42 completed sales. Total acres sold remained about the same as 3rd quarter with 3,377 acres changing hands of which 27% was farmland.

2015 Land Transactions Graph

Five of the seven counties in SW Wisconsin saw an average price per acre increase when comparing the 3rd and 4th quarters. Sauk County’s average price per acre was down slightly due to buyers closing on larger parcels which usually effects a lower $/acre price. Lafayette County also averaged a lower sale price due to the sales being predominately recreational land rather than farm land. When studying the individual transactions in these two counties they show a steady to strengthening market.

During the 4th quarter SW Wisconsin had low property inventory. A good number of nice properties were sold and not many new listings came on the market. This tight market should push prices upward and encourage potential sellers to put their property on the market.

SW Wisconsin Rural Land Sales 2015 in Review

 12 month Review
2015 2015 2015 2015
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
# of transactions 30 37 36 42
# of acres sold 2272 3162 3670 3377
% of acres tillable 44% 37% 23% 27%
average $/acre $3,502 $3,947 $3,308 $3,133
 …
Avg $/acre 2015 2015 2015 2015
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Grant $3,228 $3,387 $2,339 $3,026
Iowa $4,778 $5,649 $3,451 $3,855
Lafayette $4,726 $6,364 $6,364 $3,475
Sauk $3,589 $4,098 $3,737 $3,570
Richland $2,591 $2,415 $2,382 $2,582
Crawford $2,684 $2,592 $2,549 $2,677
Vernon $2,914 $3,127 $2,337 $2,745


Land as a Long-Term Investment
Now that we are through the recession years, it is interesting to look back and see how far the land market has come. The average price per acre in Southwest Wisconsin has gone up 16% over 5 years. For those savvy enough to buy at the bottom in 2012, the average investment has increased in value about 18.5% over the last three years.

 5 Year Review – SW Wisconsin
2011 2012 2013 2014 2015
Avg $/acre $2,996 $2,929 $3,114 $3,260 $3,473


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

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

SW WI Land Market Strengthens 4th Quarter 2015-2

*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.

Strong Land Demand at Current Prices: SW Wisconsin Land Market Update

Winter weather always affects land buyer activity in the Driftless Area of Wisconsin and less snow and milder temperatures definitely made it easier for buyers to tour parcels of interest during the first quarter of this year. In Southwest Wisconsin, buyers were quite active with 30 transactions completed involving 2,272 acres. The average price per acre increased 1.3% over 4th quarter but so did the number of tillable acres making the market appear flat at an average price per acre of $3,502.

SW WI Land Price Trends 1st qtr 2015 graph

When these numbers are added to the activity I see in my own business (such as a good number of buyer inquiries, offers written, etc.), this market could be described as a tight market. The spread between sale price and list price has narrowed considerably, but buyers are generally not stepping up to bid on overpriced properties. When this happens in conjunction with low inventory (which we also have right now), the market is poised for rising prices going forward. Yet, this tight market could hold for a while as I sense cautiousness among buyers. The recession is still fresh in everyone’s memory so it remains to be seen how soon prices will turn upward again.

Average Price-per-acre by County

Avg $/acre

2014
2nd Quarter

2014
3rd Quarter

2014
4th Quarter

2015
1st Quarter

Grant $4,334 $3,232 $3,041 $3,228
Iowa $3,669 $2,895 $3,592 $4,778
Lafayette $2,915 $2,915 $5,820 $4,726
Sauk $3,513 $3,805 $3,190 $3,589
Richland $2,032 $2,374 $2,558 $2,591
Crawford $2,721 $2,927 $2,842 $2,684
Vernon $4,636 $2,746 $3,154 $2,914


If you would like a more detailed free land market report, visit www.WisconsinLandValues.com for instructions on how to order.

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

*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.

 

Rural Land Market Steady at Close of 2014: SW Wisconsin Land Market Update

Looking back at the course of the SW Wisconsin rural land market throughout 2014 we see some ups and downs; but the big picture shows a land market that appears to be holding its own and making small gains.

4th Qtr 2014 SW Wisconsin Land Market Graph
2013 vs. 2014
A review of the year as a whole creates a picture of slow but steady growth in spite of volatility in some sectors. If you recall, in 2013 farmland was in great demand leading to 44% of all acres sold being tillable farmland. In 2014 grain prices dropped and so did the demand for farmland leading to a more normal average of 30% of acres sold being farmland. This played into the fact that 13% fewer total acres were sold in 2014 compared to the previous year and 12% fewer transactions were completed. However, the average price per acre for the entire year of 2014 grew 4.6% compared to 2013.

SW Wisconsin Rural Land Sales 2014 in Review

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
# of transactions 23 24 38 32
# of acres sold 1537 2367 2225 2610
% of acres tillable 44% 31% 19% 30%
average $/acre $3,195 $3,403 $2,985 $3,457


4th Quarter Price Rebound
During the 3rd quarter of 2014 the number of transactions jumped 58% over 2nd quarter while the average price per acre dropped mainly due to less farmland exchanging hands. 4th quarter numbers normalized somewhat with a few less transactions but more acres being sold of which 30% was farmland. Also, the average price per acre rebounded to $3,457.

Before everyone gets overly excited by this new high price, I need to point out that the average price per acre for 4th quarter is bolstered by a single large farmland parcel sold in Lafayette County for $5,820/acre. While this sale is significant and cannot be discounted in the rural land market, it’s wise to remember that one sale does not indicate a trend. A more accurate picture of SW Wisconsin rural land prices might be gained by calculating an average without this noteworthy transaction. This creates an average price per acre of $3,042 which is still above the 3rd quarter average price by 2%. Either way you look at it, the market trend points upward.

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

*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

By Jay Frazier
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: 4th Quarter Sales Up 12%

by: Jay Frazier

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.

Wisconsin Farmland Conversion Fee Repealed

by: Jay Frazier

Some folks are cheering, others are booing but the passing of the recent state budget also included the repeal of the farmland conversion fee.

For those who haven’t been following it, effective January 1, 2010 anyone that rezoned Wisconsin land from the Exclusive Ag designation (farm land) had to pay a fee that could run close to $1000. per acre.  While the intent was to discourage development and protect family farms, not everyone agreed with the law. Often, retiring farmers in the hills of southwest Wisconsin had little to show for their decades of hard work other than their land. In essence, their land was their only retirement plan and the conversion fee limited their ability to get top dollar for it when they sold. Furthermore, some felt that limiting development also reduced the income potential of rural townships which placed further burden on the already stressed family farmer. So with the recent passing of the state budget which included the repeal of the conversion fee, many land owners again saw a light at the end of the tunnel.

But not everyone is pleased. For some, the light at the end of the tunnel might well be a train. After decades of urban sprawl around Wisconsin’s cities, many were hoping that the conversion fee would slow the trend and help preserve the rural farming lifestyle. Now with the conversion fee eliminated, it may be back to business as usual since buyers or sellers of rural farm property can once again rezone without incurring conversion fees.

Since buyers and sellers generally watch the bottom line, this is a positive development in the current real estate market. Having a costly fee removed from the equation will lower the total property cost and influence consumers to move forward toward a real estate transaction.

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