Haley, Author at High Point Land Company


What is Land Selling for This Month

Land prices in the month of November 2022 were stable to higher month over month. As harvest finished up, deer hunting was well under way, and winter set in we noticed a stable to cooling market in the prior month getting more aggressive over the month of November, 2022. 

With interest rates on land financing doubling over the coarse of 2022, stock market declining then rebounding and talks of capital gains tax rates decreasing after year end we noticed the land market was stable to higher month over month. We had many land auctions that sold much higher than expected as well as traditional listings that were sold at or above list price even though the properties had been on the market for some time. Part of the reason this happened was harvest. We see operators get busy during harvest as well as land investors taking a break as all things ag are on the move. Hunting land also seemed to pause and pull back ass absentee travel to hunting destinations and hunting season planning made for a busy fall with some very favorable weather. The last feature we believe might have had an effect on the market was buyers adjusting to interest rates. The fed has continuously raised rates resulting in land mortgage rates running in the 5.5% – 7.5% rate depending on the bank, client and property type. This increase nearly halted the residential market and may have paused the land market for a short time before buyers found way to work around the increase. 

As we move into the last month of 2022 we have 3 auctions left on the calendar for December. These tracts include an A quality farmland tract in Faribault County, MN, a 191 acre 3 tract farmland auction in Chickasaw County, IA and an online 44.78 acre auction tract in Chippewa County, WI. On top of that we have a new 103.89 acre tract scheduled to be sold at auction January 18, 2023. 

If you are in the market to take advantage of the market as a buyer or a seller contact one of our land agents across 5 states today. They are a very sharp group on all topics land that would be happy to give you their insights on the local market and how you can take advantage of it for your land intentions.
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What is Land Selling for This Month

Land prices in the month of October were very stable. With a huge harvest in many areas, interest rates doubling in recent months on land financing, and deer hunting underway; there were two surprises that felt as if history was repeating itself this month.

The first takeaway from this month’s sales data was that interest rates did not seem to effect high quality land prices prices at all. A and B quality ground sold at listing or live and online auction right in line with prices where we have seen them in the previous months. Land prices in C and D quality did see a decline of 10-20% due to the lack of buyers competing for the real estate or buyers focusing on quality ground with the cash or financing opportunities they do have available. 

A and B quality tracts are trading in the 100-130/CPI point in MN and 175-300/CSR2 point in Iowa on tillable tracts, although on the lower quality farms we have definitely seen a pull back in the competition. In recreational land we have experienced the same result based on property having high quality timber, hunting neighborhoods, buildable sites for a home or cabin, and amities like cell reception or wifi capabilities benefiting the property. 

The second takeaway was that the areas that did not have a strong crop this year due to drought, late planting, interest rates increasing substantially in a very short fashion, and major stock market decline did not cause land of all classes to be hit harder. The residential market as an example of comparison has nearly halted in many markets with many loan officers reporting a substantial reduction in loan applications as well as days on market and major reductions in residential pricing stacking up without buyers to support the correction. This history looks a lot like 2008-2010 where land was a stable investment that held its price during that time as well as stayed stable in the following years of 2015-2019 when commodity prices had dropped 50+ percent. 

As we move through the 4th quarter busy season in the land real estate business, we have some very high quality tracts currently scheduled to be sold at auction. As well as new listings hitting the market daily or are currently going through marketing design. We are seeing land stay stable as it has for decades as well as continue to become more valuable with scarcity of availability acting as the foundation of it being a tangible hedge against inflation. If you or anyone you know is interested in taking advantage of the market as a buyer or a seller we would recommend reaching out to one of our licensed real estate agents. They are an excellent resource for conversations that have helped our clients make decisions worth hundreds of thousands or even millions of dollars in land real estate transactions. 

We wish your a safe and bountiful harvest in the field and the tree stand!
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What is Land Selling for This Month

Land prices for the month of August 2022 were stable to lower. We sold many tillable, recreational, farm, ranches at a variety of sale methods including live and online auction and on and off market traditional listings. The data from these diverse sales and methods of sale showed stable to lower however the outliers were a couple of very strong sales including one 33 acre tract in Dubuque County, IA selling at auction for $23,200 per acre or $350/CSR2 point at auction August 30th. 
Things that effected land prices over the month were interest rates, commodity prices, input prices, inflation, building expenses, fuel prices, and many different types of shortages effecting all categories. Interest rates being the largest facet of this list are in the 5% range compared to 3% just a few months ago. This change limits the amount a buyer can afford to pay for a property by increasing the monthly payment or reducing the numbers of buyers in the market. 
As far as the downside, we experienced a 5-10% pull back over all across all markets month over month. This was partially due to the quality of the properties that were sold over the 30 days period being mostly B, C and D class properties. The A quality properties have stayed very competitive however the lower quality has slipped a little. 
We have many buyers still looking for land and wanting to purchase all types of properties between now and the end of the year. If you have a property you are interested in selling while prices still remain historically very high, contact one of our agents today. We also have a handful of great live and online auctions over the course of the next 60 days. Learn more about each of these great properties on our dedicated auctions page.
Have a great start to harvest and hunting seasons! 
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