By: Jay Frazier
The rural land market seems to have turned the corner and given the numbers for 1st quarter it might be more accurate to say it’s made a U-turn. If you’ve been waiting to buy until the market hits bottom, you may have missed the opportunity.
Total transactions are up 114% compared to the same time period of last year. The mild winter with very little snow cover no doubt played a part in this increase although this continues the trend we noticed in the 4th quarter of 2011.
One noticeable difference during the 1st quarter of this year is that the average price per acre increased 10% compared to a year ago. I was involved in several of these transactions that weren’t necessarily arms-length deals and one large cropland* parcel in Lafayette county plays into the mix here. It will be interesting to see if sale prices are still showing an increase at the end of 2nd quarter. Having said that, I think any increase at all in price-per-acre when you have this many transactions is a sign that the market is past the bottom and on the rise.
*Cropland continues to bring a significantly higher price-per-acre than other types of rural land.
Below is a summary of land sales by county. (data from SCWMLS)
|GRANT||1st Quarter||LAFAYETTE||1st Quarter|
|# of sales||9||5||# of sales||3||6|
|total acres sold||705||233||total acres sold||228||358|
|Tillable acres||272||193||Tillable acres||207||205|
|Wooded acres||288||16||Wooded acres||21||61|
|Pasture acres||138||22||Pasture acres||0||97|
|Wetland acres||1||0||Wetland acres||0||0|
|RICHLAND||1st Quarter||SAUK||1st Quarter|
|# of sales||9||1||# of sales||13||4|
|total acres sold||610||136||total acres sold||620||121|
|Tillable acres||151||136||Tillable acres||286||21|
|Wooded acres||445||0||Wooded acres||290||99|
|Pasture acres||15||0||Pasture acres||92||17|
|Wetland acres||0||0||Wetland acres||6||0|
|CRAWFORD||1st Quarter||VERNON||1st Quarter|
|# of sales||2||1||# of sales||3||2|
|total acres sold||93||79||total acres sold||922||122|
|Tillable acres||5||25||Tillable acres||642||62|
|Wooded acres||77||40||Wooded acres||225||56|
|Pasture acres||2||14||Pasture acres||0||0|
|Wetland acres||0||0||Wetland acres||0||0|
|# of sales||6||2|
|total acres sold||436||85|
To learn more about the current market, begin your search here: Southwest-Wisconsin-Real-Estate.comAll data was taken from the SCWMLS and did not include residential lots or commercial land sales.