Land Prices in the month of April 2022 remained at high levels. The cold weather spring, fuel prices supporting ethanol, and the Russia/Ukraine conflict to name a few have commodity prices at the highest levels in history. Interest rates made some big increases over the month leaving sellers wondering if it was going to effect land prices and the answer is “no” and/or “not yet”. Statistically we did not see any decline in average prices per acre with the interest rate increases, however they have not increased on the land side nearly as much as on the residential side of mortgages however that may change. If and when it does rates are still historically low, although it will reduce the affordability for buyers purchasing with a loan which have increased compared to cash purchasers in the last month.
High Point sold land for estates, farm families, investors, hunting land owners, absentee land owners and rural home owners over the coarse of the month giving us a great idea of what markets are doing in all categories. We also had many successful land auctions including one in Allamakee County, IA selling over $210/tillable CSR2. The tillable land market has had very strong selling numbers from farmer operators and investors alike looking for a stable investment and place to combat inflation.
The recreational land market was also very strong with many buyers looking for hunting land and buildable opportunities in the country. We have many buyers looking for hunting and recreational land in all markets. These buyers are locals as well as people looking to move to the area or find a get away consistently out of big cities or northern states with cold weather.
We currently have 8 auctions scheduled for June if you are looking for land. We are keeping a close eye on the weather this spring as it is giving the market very high numbers that will directly effect the growers bottom line allowing them to pay more for land as well as pay higher rents on land to owners looking to rent out the land.
If you are interested in selling land or a farm contact one of our land agents today. They are on top of the market and have a wealth of knowledge on everything land.
Have a nice start to spring and safe planting season.