Land Prices during March 2022 were stable to higher remaining high overall in comparison to historical prices. Land during the month sold at Live Public Auction stood far and above at the prices it achieved above other sales methods. Sellers were estate acquired real estate, consolidating or retiring farmer operators, investors, and absentee land owners. Buyers were aggregate and row crop land investors, hunting land or recreational land buyers and absentees looking to take advantage of many opportunities offered in todays land offerings.
Things that caused land prices to increase over the last month motivating buyers to buy were primarily availability, scarcity, Russia/Ukraine conflict, drought, interest rates, cash, input costs, rents, commodity prices, inflation, timber markets, building costs and fuel prices to name a few. These factors are mainly motivating buyers to purchase land as a benefit while on the sellers side the motivation is different. Sellers are not only seeing this as a good time to cash in but benefiting equally by achieving a higher price, having favorable tax environments and moving equity into simpler managed investments or turning to cash.
We had many above expectation sales this month including a beautiful Mitchell County, IA 80 acre tract that sold for $19,900/acre with a 91.9 CSR2 and nearly $24,000 per tillable acre really showing what a well executed auction can achieve. We had many tillable land sales in the 10-$15,000 per acre range and prices were based on quality, size, area, tile and neighborhood. Tillable land ranged from $100-$230+ per CSR2 point and $100-$150 per CPI point making marketing and exposure to the right buyers very important as more land becomes available for purchase.
On the recreational timber land side we are seeing prices in the 4-$7,000 per acre range regularly based in the property being buildable, having good access, being high quality hunting or fishing and have quality timber stands on the property. This market is influenced strongly by interest rates which have started to increase leaving buyers with a higher payment than in previous months.
The land market remains strong for many reasons as we move into the spring. If you are interested in selling a property feel free to reach out to one of our great land agents to talk with them about your intentions. They would be happy to help you find the perfect buyer for the best price when you are ready. If you have inherited a property via estate and are in need of a basis establishment appraisal for tax purposes or are obtaining a land loan reach out to our appraisal department Either would be a great resource or conversation to ensure you are taking advantage of the hot land market today.
Have a safe, enjoyable spring!