Land prices in the month of July 2022 were stable in some areas and lower in others. We sold many tracts in Iowa, Wisconsin, Minnesota, Colorado and Missouri; and noticed a few trends across the listings and auctions compared to the rest of the market.
The auctions we held all had very aggressive bidding and were well attended live and online from local buyers as well as regional and national buyers. Successful bidders were all types and funded by bank loans, 1031 exchanges, cash and contract for deed. Land sold at auction was the highest in the state of Iowa ranging from $170 to nearly $300per CSR2 point on the tillable ground ranging from $9,700-$20,200 per tillable acre. On the recreational land side, the range was from $7,000-$10,400/ac in the state. We also had auctions in Minnesota and Wisconsin which had similar results on the attendance and prices with one land auction in Mower County, MN selling for $11,874/tillable acre and $137/CPI point. In Wisconsin in Eau Claire County we had a successful land auction result in a $6500/acre price across 94+/- acres of farm land. The traditional listing, off market, and sealed bids sales had great results as well with many rural building sites, tillable ground and hunting farms selling at or above expectation through out the month.
Two topics we are watching very closely currently is interest rates and commodity prices as we have noticed across the entire land market a few sales have seemed to soften outside of our firm. Corn and soybean prices throughout the last couple months have declined from nearly $8.00/bu range down to low 6’s on corn and soybeans peaked in the high 16’s then down to low 15’s and have returned into mid $16.00. Interest rates have been a major concern especially on the residential side nearly doubling in the last 6 months for loans than can be obtained on residential homes and consumer products. This has slowed some residential markets down substantially around the country with days on market on listings increasing and sale prices declining in some areas from the peak. In agricultural financing we have seen an increase, however not as high as the residential market. Local lenders we have spoken to recently are in the 4.25-4.75% on rates with good lock terms still available. This is higher than they have been in past months, but we have not seen this affect the market negatively yet.
We have many auctions coming up in the next 60 days, as well as new high quality land listings. If you are looking for land for sale, check out our website or give any of our agents a call to talk land.