|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.