Rural Land Market Ends Year on a High Note

SW Wisconsin Land Market Update

The rural land market finished the year strong with an average price per acre of $3,745 for the SW Wisconsin region. 3,286 acres changed hands; the most sold during a quarter in the last 2 years.

2017 Rural Land Market Review

1^st Quarter – 2,852 acres sold in 29 transactions for an average of $3,384/acre

2^nd Quarter – 3,137 acres sold in 38 transactions for an average of $3,484/acre

3^rd Quarter – 2,186 acres sold in 26 transactions for an average of $3,055/acre

4^th Quarter – 3,286 acres sold in 37 transactions for an average of $3,745/acre

Current Market Characteristics

• Competing offers are common

Properties that hit the market with a correct asking price are selling quickly, often receiving multiple offers and selling close to or at full price. Overpriced properties languish on the market, so despite low inventory, buyers are very in tune to current values and not willing to exceed them.

• Stronger demand for larger parcels

While the number of transactions during the 4th quarter are down from last year, the number of acres sold increased by 19%. Larger parcels continue to attract buyers this year with the average parcel size sold during 4th quarter at 89 acres.

• Farmland demand is on the rise

43% more farmland acres sold during 2017 compared to 2016. Farmland comprised 34% of the total acres sold in 2017, whereas farmland acres totaled just 29% of the total acres sold during the previous year.

• Stage is set for a strong 2018

Sellers and Buyers are coming closer together on price. For all land types and parcel sizes in SW Wisconsin, the 2017 list price to sell price ratio was 90% compared to 86% in 2016.
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4th Quarter 2016 vs. 4th Quarter 2017

Here’s a look at land sales by county in SW Wisconsin:

Grant County
3 tracts of land sold during the 4^th quarter 2017 (involving 242 acres) compared to 4 sales during the 4^th quarter of the previous year (involving 583 acres). The average price per acre was $3,852 compared to $3,759 a year ago; an increase of 2.5%.

Iowa County
5 tracts of land sold during the 4^th quarter 2017 (involving 273 acres) compared to 7 sales during the 4^th quarter of the previous year (involving 652 acres). The average price per acre was $4,091 compared to $3,686 a year ago; an increase of 11%.

Lafayette County
3 tracts of land sold during the 4th quarter 2017 (involving 608 acres) compared to zero land sales reported during the 4^th quarter of the previous year. The average price per acre was $5,119 compared to $4,688 a year ago. (carried over from third quarter); an increase of 9%.

Sauk County
8 tracts of land sold during the 4th quarter 2017 (involving 449 acres) compared to 10 sales during the 4th quarter of the previous year (involving 479 acres). The average price per acre was $4,693 compared to $3,444 a year ago; an increase of 36%. The value of property within several SW Wisconsin counties is significantly influenced by the location within the county as well as the type of land being sold. As a result, the 36% increase shown may not be an accurate reflection of the actual market value increase.

Vernon County
5 tracts of land sold during the 4^th quarter 2017 (involving 230 acres) compared to 7 sales during the 4^th quarter of the previous year (involving 320 acres). The average price per acre was $2,986 compared to $3,219 a year ago; a decrease of 7%.

Crawford County
6 tracts of land sold during the 4^th quarter 2017 (involving 735 acres) compared to 5 sales during the 4^th quarter of the previous year (involving 354 acres). The average price per acre was $2,760 compared to $2,671 a year ago; an increase of 3%.

Richland County
7 tracts of land sold during the 4^th quarter 2017 (involving 749 acres) compared to 6 sales during the 4^th quarter of the previous year. The average price per acre was $3,166 compared to $2,834 a year ago; an increase of 12%.

For Landowners

If you would like a more detailed land market report for your area (free)*, visit www.LandMarketReport.com for instructions on how to order.

Averages are just guidelines
Buyers and sellers need to be aware that average sale prices are only a general guideline. An on-site property evaluation by an experienced land agent is needed to give you an accurate picture of what a property is worth in the current market. To learn more about the rural land market in Southwest Wisconsin, begin your search here: Southwest-Wisconsin-Real-Estate.com

*Free Land Market Reports are available to landowners for these SW Wisconsin Counties: Grant, Lafayette, Iowa, Sauk, Richland, Crawford, & Vernon

*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was sourced from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 20 acres, residential, and commercial land sales were not included.