SW Wisconsin Land Market Update
Little has changed in the rural land market during the 2nd quarter of 2016 in Southwest Wisconsin. The number of transactions was up over 1st quarter 2016 from 32 to 42 transactions. The average price per acre rose slightly from 1st quarter; however, the average parcel size came in at just 59 acres. This is quite a bit smaller than a year ago where the average was 102 acres. Smaller parcels tend to sell at a higher dollar per acre than larger parcels, so the general land market appears to be strong with prices holding firm.
Current Market Characteristics
- Low Inventory Continues
For the past year there have been fewer nice properties on the market. For prime real estate, multiple offers are now fairly common. The stiff competition has triggered a few offers above list price which follows the trend in metro areas where buyers are desperate enough to add escalator clauses to their offers.
- Prices are inching upward
Four of the seven counties saw an average price per acre increase over 1st quarter. The average price-per-acre went from $3,325 in the 1st quarter of this year to $3,484/acre in the 2nd quarter. When other market factors are figured in, this isn’t much of a gain, but neither is it a loss.
- Sellers wait and see
The summer months are typically a little slower in the rural land market, but this year the trickle of fresh new listings has almost dried up. The uncertainty of the upcoming national election results might be influencing sellers to hold off. Also, the trends in urban real estate show a hot seller’s market, and some of the property owners I have talked to recently are waiting to list in hopes that this trend will reach the rural markets as well.
- Buyers searching, waiting
The competition for rural land is heating up a bit. Buyers are actively searching for rural properties, many waiting for something suitable to come up for sale. In most cases they do their research and aren’t bidding on overpriced parcels. Properties priced correctly for the local market are moving quickly.
SW Wisconsin Rural Land Sales 12 Month Review
| SW Wisconsin | 2015 | 2015 | 2016 | 2016 | |||||
| 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | ||||||
| # of transactions | 36 | 42 | 32 | 42 | |||||
| # of acres sold | 3670 | 3377 | 2296 | 2481 | |||||
| % of acres tillable | 23% | 27% | 25% | 32% | |||||
| average $/acre | $3,308 | $3,133 | $3,325 | $3,484 | |||||
| … | |||||||||
| Avg $/acre by county | 2015 | 2015 | 2016 | 2016 | |||||
| 3rd Quarter | 4th Quarter | 1st Quarter | 2nd Quarter | ||||||
| Grant | $2,339 | $3,026 | $3,136 | $4,352 | |||||
| Iowa | $3,451 | $3,855 | $4,885 | $4,131 | |||||
| Lafayette | $6,364 | $3,475 | $3,475 | $3,605 | |||||
| Sauk | $3,737 | $3,570 | $3,684 | $3,729 | |||||
| Richland | $2,382 | $2,582 | $3,122 | $3,088 | |||||
| Crawford | $2,549 | $2,677 | $2,532 | $2,185 | |||||
| Vernon | $2,337 | $2,745 | $2,439 | $3,296 | |||||
If you would like a more detailed land market report for your area (free), visit www.WisconsinLandValues.com for instructions on how to order.
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
*SW Wisconsin includes Grant County, Lafayette County, Iowa County, Sauk County, Richland County, Crawford County, & Vernon County. All data was taken 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.
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