By: Jay Frazier
This past summer will long be remembered for the drought that affected much of the country as well as the record high temperatures. Perhaps this had some effect on land sales; but when studying the numbers for southwest Wisconsin, it doesn’t appear to have had much effect if any. Last quarter we saw both the number of sales and the price per acre of rural land inch upward. For 3rd quarter we still have increased sales, but the price per acre slipped about 5% over 2011 prices. It’s interesting to note that prices have declined slightly even since the beginning of this year so we are experiencing a dip in the road to recovery as far as prices go.
Land buyers continue to be much more active this year than last. Five of the seven counties in this area saw an increase in the number of sales with Grant County leading the way. Overall land transactions are up 47% for the 3rd quarter compared to the same period last year.
Only Vernon County realized an increase in price per acre for the 3rd quarter. The other 6 counties studied experienced a decline in price per acre. An interesting side note to pricing involves the list to sale price ratio. As the number of sales goes up, so has the list to sale ratio from 89% to 92%. I think this reflects the willingness of sellers to bring their asking price more in line with current market conditions. Buyers have spoken loud and clear with their dollars during the first 3 quarters of this year. They are ready, willing, and able to buy parcels that represent a good value.
Below is a summary of land sales by county (data from SCWMLS & WiREx).
|GRANT||3rd Quarter||LAFAYETTE||3rd Quarter|
|# of sales||10||1||# of sales||3||2|
|total acres sold||923||22||total acres sold||99||391|
|Tillable acres||381||0||Tillable acres||0||302|
|Wooded acres||492||22||Wooded acres||43||50|
|Pasture acres||90||0||Pasture acres||49||0|
|Wetland acres||0||0||Wetland acres||7||0|
|RICHLAND||3rd Quarter||SAUK||3rd Quarter|
|# of sales||5||6||# of sales||5||4|
|total acres sold||277||822||total acres sold||562||149|
|Tillable acres||36||380||Tillable acres||145||55|
|Wooded acres||231||391||Wooded acres||367||92|
|Pasture acres||10||57||Pasture acres||46||0|
|Wetland acres||0||0||Wetland acres||5||0|
|CRAWFORD||3rd Quarter||VERNON||3rd Quarter|
|# of sales||3||2||# of sales||4||6|
|total acres sold||158||242||total acres sold||155||267|
|Tillable acres||34||55||Tillable acres||40||65|
|Wooded acres||118||187||Wooded acres||115||191|
|Pasture acres||0||0||Pasture acres||0||6|
|Wetland acres||0||0||Wetland acres||0||2|
|IOWA||3rd Quarter||TOTAL for all 7 COUNTIES||3rd Quarter|
|# of sales||4||2||# of sales||34||23|
|total acres sold||176||340||total acres sold||2350||2233|
|Tillable acres||49||182||Tillable acres||685||1039|
|Wooded acres||52||115||Wooded acres||1418||1048|
|Pasture acres||57||29||Pasture acres||252||92|
|Wetland acres||18||0||Wetland acres||30||2|
To learn more about the current land market in Southwest Wisconsin, begin your search here: RuralPropertyPro.com
All data was taken from the SCWMLS & WiREx. Because this article was intended to review the rural land market, properties smaller than 15 acres, residential, and commercial land sales were not included.