How about this short list to start off 2021?
Corn nearing $5.50, soybeans bouncing around $14.00, another stimulus package with potentially a third on the way, stock market high point ever, new administration tax proposal, China’s largest ethanol
pre commitment ever and record low interest rates to name a few.
To start this off if you are thinking about selling any real estate in the slightest bit contact a professional. Our firm has experienced major price increases and selling off market or at yesterday’s prices could be a major financial mistake. We are in a sellers market currently giving the seller many opportunities to reach their goals.
Land prices have increased on average 5-7% over the last 90 days. High quality property has increased much more than this in most situations and low quality property has less interest however we are starting to repeat 2010-2013 where we saw the high increasing the low along with it.
The opportunity we sit in today has one of two outcomes. First is an increase to a “new normal” over time. Projections show an increase in all markets however, it is a constant that hindsight is 2020. The risk on this lies in the flip side where we create a bubble, interest goes up, grain goes down and demand slows.
In 2010-2013 we saw land sell at prices that we are just getting back to which means we had 7-10 yr plateau or decrease with a struggling farm economy during that time. Land as an investment is an excellent hedge against inflation and time when purchased and managed correctly. If you are in the market to buy or sell land contact one of our agents today to see where the opportunity lays in each market they are a wealth of knowledge on the topic of land.