Land prices for the month of November 2020 were again slightly higher. We had many types of properties trade or go pending, multiple land auctions, and many new properties hit the market giving us a very good handle on the current market. Factors affecting the market were low interest rates, increased commodity prices, large crop in some areas, scarcity of available land, and available land lending opportunities. Buyers were 1031 exchanges exiting other qualified real estate, stock market exits, local operators, local business owners, people exiting the city for recreational and home building purposes, and hunting land purchases. Sellers were 1031 exchange sellers, investors, estates, partnership exits, lender forced sales and absentee owners.
The market overall rose in price and showed strong absorption of available property that had been previously listed. The auction market for tillable property was exceptionally strong with properties selling in a range of 95-130/CSR2 point and over $90/CPI point consistently. Prices varied based on multiple types of quality for example hunting neighborhood, quality of improvements, soil quality, available drainage, exposure, road access, field size, and overall tract size.
Land Prices per state and hot topics this month:
Iowa:Timber Land – $3000 – $7000/ac Tract size, hunting neighborhood, buildable, top or bottom access, and water features. Tillable Land – $5500-$14,000/ac CSR2 quality, tract size, available markets, local rental rates, tile, CRP rates, timber quality
Wisconsin:Timber Land – $3500 – $6000 Tract size, hunting neighborhood/history, buildable, top or bottom access, and non-resident interestTillable Land – $3500 – $9000 Field size, area, soil quality, investor interest. available tenants, yield history
Minnesota:Timber Land – $3000 – $5000 Tract size, hunting neighborhood, buildable, top or bottom access, and water features. Tillable Land – $4500 – $9500 CPI quality, tile, property taxes in the county, and organic operators
Land prices had plateaued for the most part and remained stable through a very difficult time for growers over the last 2-3 years. The increase in commodity prices paired with good crops and low interest has rents, land ROI’s, and prices increasing. We have also seen the largest buyer interest in our experience for rural hunting and buildable properties for homes or cabins. This is the 3rd month in a row we have seen this trend and expect it to continue through the end of the year.
If you or someone you know needs an appraisal or is interested in buying or selling land visit our website at HighPointLandCompany.com or call us today at 507-218-1243.