Posts Tagged ‘Jay Frazier’

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.

 

Land Sales Jump 58% as Prices Dip: SW Wisconsin Land Market Update

By: Jay Frazier

No one would argue that the land market is vastly improved from where it was three years ago, but where exactly is it now? Seller’s market? Buyer’s market? Neutral? Sometimes it’s hard to tell.

The average sale price climbed pretty steadily through all of last year and the first half of this year while the number of transactions fluctuated. This last quarter the market waffled again in favor of more completed transactions with a lower average sale price. The number of completed transactions in 3rd quarter took a big leap up 58% compared to the first two quarters of this year.

SW WI Land Sales Chart

Conversely, the average price per acre dipped to just under $3,000 ending up at $2,985. This price drop likely reflects the type of land sold more than a market correction. During the first half of the year 36% of the acreage sold was tillable farmland (which typically carries a higher value than other types of land) while 3rd quarter sales comprised only 19% tillable acres.

SW Wisconsin Land Prices Chart 3rd Quarter 2014

Historically, the number of 3rd quarter transactions total somewhat less than the spring months, but this year defies tradition. A closer look at the transactions this 3rd quarter reveals the majority of sales were properties in the 20 – 80 acre range many of which came on the market and sold quickly. Not only did they sell quickly, but most of the sale prices calculated out at over 90% of the asking price. This would indicate a high demand which, when combined with low inventory, paves the way for further market improvement in the 4th quarter.

Here are a few specific highlights for 3rd quarter:

  • Sauk County shines as the only county to realize whopping average price gains since January 1st ending up at an average of $3,805/acre.
  • Richland County moved the most acres selling 632 acres in 7 transactions. The average price/acre there remains steady at $2,374.
  • Vernon County showed the most sales with 8 completed transactions and saw a price drop mainly due to the majority of land sold being wooded versus the higher value farmland parcels sold in the first half of the year.
  • Grant County also lost ground in the price category with land type being the major factor there in 4 completed transactions of mainly wooded land and very little tillable.

SW Wisconsin Rural Land Sales 6 Month Report
April 30, 2014 through September 30, 2014

Grant Iowa Lafayette Sauk
2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr
# of sales* 3 4 3 6 4 0 6 7
# acres 207 208 284 491 298 0 1155 331
woods 31 142 244 389 75 0 787 221
tillable 177 45 23 84 123 0 336 86
pasture 0 21 6 15 10 0 10 21
wetland 0 0 10 3 90 0 21 0
avg $/acre $4,334 $3,232 $3,669 $2,895 $2,915 $2,915 $3,513 $3,805
  ~
Vernon Crawford Richland TOTAL
2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr 2nd Qtr 3rd Qtr
# of sales* 2 8 4 6 2 7 24 38
# acres 42 297 269 266 112 632 2367 2225
woods 0 212 230 192 97 461 1464 1617
tillable 42 61 22 56 15 101 738 433
pasture 0 23 14 16 0 10 40 106
wetland 0 0 0 0 0 20 121 23
avg $/acre $4,636 $2,746 $2,721 $2,927 $2,032 $2,374 $3,403 $2,985


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.

Sneak Peak at 3rd Quarter Land Sales

by: Jay Frazier

Here’s a sneak preview of SW Wisconsin 3rd quarter land sales. This number can only go higher as any closings from yesterday get recorded.

We have seen a pretty big jump in the total number of sales during the 3rd quarter (up 54% as I write). Many of these transactions are for parcels 30-80 acres in size and the majority of those sold for over 90% of the asking price. This type of parcel is in high demand right now.

Land Sales Are Up 54%

To find out what land in your area is currently selling for, visit: www.WisconsinLandValues.com or call my office and request a Land Sales Report for your area. (608) 739-3515.

%d bloggers like this: