SW Wisconsin Land Sales Update: Prices On The Rise

The first quarter of 2013 is now history and spring has finally made a weak appearance.  If you recall, last winter (2011-2012) was the year of unwinter and strong land sales numbers continued through the normally slow period. 50 transactions were completed in the first quarter of 2012 with an average price per acre of $3,322.  This year has been quite the opposite with snow removal being an almost daily activity and winter loathed to leave when the calendar said it should.  The number of transactions for 1st quarter reflects a more normal Wisconsin winter, but when compared to last year’s unusual circumstances they appear weak.

Despite the price drop shown here, it’s almost certain the land market is in better shape than a year ago.  You can see this when taking an overall look at the price trends for the past 12 months.

One thing I consider when I see a sale price spike (like in 1st quarter 2012) is the amount of tillable acreage that was sold. Currently, tillable land (cropland/farmland) is generally bringing a higher price per acre due to the faster ROI (return on investment) than other types of rural land. While tillable acreage sold in recent quarters hovered right around 30% of the total acreage, in the 1st quarter of 2012 the tillable acreage sold was 47% of the total. This appears to be the dominant factor influencing the price hike at that time. Throughout 2012 the average price dropped even as buyer activity increased. As a result of sellers becoming more motivated and buyers taking advantage of record low interest rates, a lot of excess inventory was cleared out making way for market improvement.

From the looks of things where they are right now, 2012 was the time to buy at the bottom. All factors point to slowly rising prices this year and there are even a few indications that a seller’s market may be around the corner.

Buyers and sellers need to be aware that average sale prices are only a general guideline. The demand and sales price for any particular property will most likely vary up or down (often substantially) from the averages shown. Location within a county will affect price as will soil types, zoning, road access, government programs, water, timber value, easements, rental value, lay of the land, potential building sites, access to utilities and various other factors. Of course, a home, out buildings or other improvements will also affect the value.  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 current land market in Southwest Wisconsin, begin your search here: RuralPropertyPro.com

For those that enjoy statistics, here’s the breakdown by county:

GRANT	1st   Quarter			LAFAYETTE	1st   Quarter
	2013	2012			2013	2012
# of sales	2	8		# of sales	5	3
total acres   sold	179	686		total acres sold	244	228
Tillable acres	74	272		Tillable acres	150	207
Wooded acres	99	269		Wooded acres	46	21
Pasture acres	0	138		Pasture acres	50	0
Wetland acres	0	1		Wetland acres	0	0
$/acre	$2,622	$2,938		$/acre	$4,630	$5,962
RICHLAND	1st Quarter			SAUK	1st Quarter
	2013	2012			2013	2012
# of sales	5	7		# of sales	3	13
total acres   sold	408	565		total acres sold	107	620
Tillable acres	86	139		Tillable acres	6	286
Wooded acres	302	412		Wooded acres	101	290
Pasture acres	20	14		Pasture acres	0	92
Wetland acres	0	0		Wetland acres	0	6
$/acre	$2,537	$2,626		$/acre	$2,132	$3,198
CRAWFORD	1st Quarter			VERNON	1st Quarter
	2013	2012			2013	2012
# of sales	5	3		# of sales	1	10
total acres   sold	336	184		total acres sold	100	1215
Tillable acres	96	30		Tillable acres	25	722
Wooded acres	231	118		Wooded acres	75	491
Pasture acres	20	27		Pasture acres	0	0
Wetland acres	0	0		Wetland acres	0	2
$/acre	$2,579	$2,071		$/acre	$2,231	$2,591
IOWA	1st Quarter			TOTAL for all 7 COUNTIES	1st Quarter
	2013	2012			2013	2012
# of sales	4	6		# of sales	25	50
total acres   sold	147	436		total acres sold	1521	3934
Tillable acres	24	200		Tillable acres	461	1856
Wooded acres	102	168		Wooded acres	956	1769
Pasture acres	2	84		Pasture acres	92	355
Wetland acres	19	2		Wetland acres	19	11
$/acre	$3,174	$3,871		Avg $/acre	$2,844	$3,322

*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. Acreage breakdown may vary due to land remnants and other factors.

Real Estate Dreams

Recently, I had a lady tour my website and fill out a form which said:

“To be honest, I have no current plans to buy, just like to look and dream!”

That started me thinking about real estate and how it’s uniquely tied to virtually everyone’s dreams. Whether we’re looking for a New York apartment with an additional one hundred square feet or a thousand acres of prime hunting land, nearly everyone has a “real estate dream”.

The interesting thing is that our real estate dreams change as we move through life. The pride of ownership in the little starter home begins to dim as children arrive and we feel cramped. At that point, our dream property may just be something with 3 bedrooms, 2 baths and a fenced yard for the family pet. As time progresses the real estate dream continues to mature and maybe a house on the lake or a hunting property is the current goal. Retirement often brings downsizing and the house on the lake may become the permanent residence with the family home being put on the market. And so it goes. Changes occur throughout our life, but one of the things that remain constant is the real estate dream.

The great thing about real estate is that when your dream property no longer fits your needs, it is still someone else’s perfect place. I’ve found over the years that no matter how many buyers turn up their noses at a property, there will always be someone that simply loves it! Also, unlike your 10 year old car that was the must-have when you bought it but is worth little today, real estate remains a great investment.

The bottom line is that real estate dreams are what make my chosen profession challenging yet so rewarding. The search for the dream property for some of my clients has taken a year or more and at times the dream has changed over the course of the search. Just as a hunting guide works hard for a client to locate and collect a trophy, I work hard for my loyal clients to find and acquire their trophy property. It’s a long road at times but when it’s finished, it’s very rewarding to be able to share their happiness.

So as I told the lady viewing my website, I think everyone has a dream property so please dream away and if I can be of assistance in the future, just let me know.

“You are never too old to set another goal or to dream a new dream.” -C.S.Lewis

If your real estate dream includes property in southwest Wisconsin, begin your search here: www.Southwest-Wisconsin-Real-Estate.com

By: Jay Frazier

SW Wisconsin Land Sales Update: 4th Quarter Sales Up 12%

The year finished strong with a large number of transactions closing in the 4th quarter.  Total land sales in SW Wisconsin were up 12% compared to the 4th quarter of 2011 with Iowa County realizing the largest sales increase.  Over 1,000 acres changed hands in Iowa County between October 1st and December 31st.  The average sold price-per-acre dropped significantly in conjunction with this big jump in sales for Iowa County (from $3892 in the 3rd quarter down to $3093).  Since the tillable to wooded ratio remained fairly constant it would appear that Iowa County prices are aligning themselves more closely with the rest of SW Wisconsin.  Buyers took advantage of this trend as evidenced by the high number of transactions and acres sold.

Prices were fairly even across the region with an average price per acre of $2546.  However, when comparing this to the average price per acre of the last quarter in 2011, it is down by almost 12%.  This continues the downward trend we saw in the 3rd quarter and was influenced by several factors.  Sellers were quite motivated to close in 2012 due to the uncertainty of capital gains tax changes for the New Year.  Also, buyer demand held fairly steady for properties priced near the current market value.

The land price decline through 2012 taken together with the increase in sales would indicate the land market is still in recovery mode.  With the exception of farmland, average land prices in SW Wisconsin still struggle to make significant gains.  On the positive side, the higher transaction numbers in 2012 helped reduce a lot of excess inventory which clears the way for building stronger buyer demand and higher per acre prices in 2013.

Below is a summary of land sales by county (data from SCWMLS & WiREx):

GRANT	4th   Quarter			LAFAYETTE	4th   Quarter
	2012	2011			2012	2011
# of sales	7	4		# of sales	3	6
total acres sold	335	406		total acres sold	383	864
Avg $/acre	$2,313	$2,921		Avg $/acre	$2,765	$4,283
RICHLAND				SAUK
# of sales	7	10		# of sales	6	5
total acres sold	367	1082		total acres sold	349	127
Avg $/acre	$2,588	$1,941		Avg $/acre	$2,729	$3,175
CRAWFORD				VERNON
# of sales	3	5		# of sales	9	8
total acres sold	216	272		total acres sold	618	417
Avg $/acre	$2,576	$1,846		Avg $/acre	$2,420	$2,544
IOWA				TOTAL for all 7 COUNTIES
# of sales	11	3		# of sales	46	41
total acres sold	1016	145		total acres sold	3284	3313
Avg $/acre	$3,093	$4,328		Avg $/acre	$2,641	$3,005

To learn more about the current land market in Southwest Wisconsin, begin your search here: Southwest-Wisconsin-Real-Estate.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. Acreage breakdown may vary due to land remnants and other factors.

Hunting Land In SW Wisconsin

Hunting of most any type has been a long standing tradition in Wisconsin, but deer hunting especially brings enthusiasts to a fever pitch. Much of southwest Wisconsin is prime whitetail deer habitat, so every November the blaze orange army descends on rural areas to seek out these critters. Hunters and non-hunters alike observe the opening day of the gun hunting season with revered traditions. For those not in the know, beware of planning any special events on this day; deer hunting will be the top priority.

I captured this photo of a whitetail buck with a game camera
a couple weeks ago as he walked by my hunting spot.

The geography of southwest Wisconsin having agricultural fields intertwined with wooded hillsides creates a whitetail utopia. While Wisconsin has preserved over 62,000 acres for public hunting in the southwest portion of the state, it can often feel crowded in those woods. With license sales exceeding 600,000 it’s bound to be difficult to find a place on public lands where you don’t see another hunter during a morning stand.

Another game camera photo captured at night with infrared light.

I take deer hunting pretty seriously as my wife will attest. Bow hunting is a passion of mine and from it I have learned you can vastly improve the quality of your hunt by managing the land specifically for deer. Approximately half of the buyers I work with every year are seeking their own hunting paradise with habitat management in mind. Additionally, they are making a long term investment in farmland and/or timberland while providing a wealth of outdoor opportunities for camaraderie and experiences worthy of mention in any memoir.  Perhaps this facet of the real estate market is fairly small in the grand scheme of things but here in southwest Wisconsin the hunting culture makes a strong impact.

Real Estate is also something I take very seriously. Connecting sellers and buyers to create a successful transaction is a challenge I readily accept, especially when the hills and valleys of SW Wisconsin are at the heart of it.

Whitetail Utopia in Richland County Wisconsin

The southwest Wisconsin hunting land region discussed here covers these counties: Grant County, Crawford County, Vernon County, Richland County, Sauk County, Iowa County, Lafayette County

In Honor of Veterans Past & Present

One thing I really admire about the small rural communities in Southwest Wisconsin is their support of American Veterans. Even with the tough economic times we’ve gone through the past several years, the communities of Blue River, Muscoda, and Richland Center have made it a priority to publicly honor the veterans of these areas with memorials. Above is a photo of the memorial in Muscoda.

Thank you to all veterans for serving our great nation.

SW Wisconsin Land Sales Update: 3rd Quarter Sales Up But Prices Slip Slightly

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 3^rd 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
	2012	2011			2012	2011
# 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
$/acre	$2,839	$2,954		$/acre	$3,051	$3,519
RICHLAND	3rd Quarter			SAUK	3rd Quarter
	2012	2011			2012	2011
# 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
$/acre	$2,580	$2,639		$/acre	$3,200	$3,766
CRAWFORD	3rd Quarter			VERNON	3rd Quarter
	2012	2011			2012	2011
# 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
$/acre	$2,185	$2,310		$/acre	$2,900	$2,400
IOWA	3rd Quarter			TOTAL for all 7 COUNTIES	3rd Quarter
	2012	2011			2012	2011
# 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
$/acre	$3,892	$4,217		Avg $/acre	$2,950	$3,115

 

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.

SW Wisconsin Land Sales Update: 2nd Qtr Continues Upward Trend

Last quarter we saw both the number of sales and the price per acre of rural land inch upward and that trend continued into the 2^nd quarter this year in southwest Wisconsin. There is still a lot of inventory on the market, but buyers are very active and quickly snap up parcels that represent a good value.

Five of the seven counties in this area saw an increase in the number of sales with Sauk County leading the way. Overall land transactions are up 48% for the 2^nd quarter compared to 2011. Four of the seven counties also realized a price per acre increase during the 2^nd quarter compared to the same time period a year ago. The average price per acre for the whole area increased 3.5% since last year so prices are slowly strengthening.

We can confidently say the market is recovering nicely although it will probably be some time before we return to a market like we saw in 2006. In my own business I am seeing multiple offers as well as shorter days on the market. These are two more characteristics of an improving market.

Below is a summary of land sales by county. (data from SCWMLS)

GRANT	2nd Quarter			LAFAYETTE	2nd Quarter
	2012	2011			2012	2011
# of sales	7	11		# of sales	9	3
total acres sold	615	1337		total acres sold	581	139
Tillable acres	308	516		Tillable acres	294	49
Wooded acres	238	701		Wooded acres	129	30
Pasture acres	50	114		Pasture acres	105	63
Wetland acres	0	0		Wetland acres	43	0
$/acre	$3,417	$2,278		$/acre	$3,961	$3,177
RICHLAND	2nd Quarter			SAUK	2nd Quarter
	2012	2011			2012	2011
# of sales	10	11		# of sales	12	5
total acres sold	786	465		total acres sold	510	163
Tillable acres	207	210		Tillable acres	209	3
Wooded acres	473	148		Wooded acres	251	147
Pasture acres	106	43		Pasture acres	26	10
Wetland acres	0	16		Wetland acres	20	3
$/acre	$1,965	$2,509		$/acre	$3,544	$4,337
CRAWFORD	2nd Quarter			VERNON	2nd Quarter
	2012	2011			2012	2011
# of sales	10	3		# of sales	3	2
total acres sold	1037	120		total acres sold	149	223
Tillable acres	71	40		Tillable acres	0	115
Wooded acres	943	73		Wooded acres	84	56
Pasture acres	19	7		Pasture acres	2	42
Wetland acres	11	1		Wetland acres	3	10
$/acre	$2,288	$2,530		$/acre	$1,960	$1,870
IOWA	2nd Quarter			TOTAL for all           7 COUNTIES	2nd Quarter
	2012	2011			2012	2011
# of sales	7	4		# of sales	58	39
total acres sold	417	345		total acres sold	4095	2792
Tillable acres	232	212		Tillable acres	1321	1145
Wooded acres	152	54		Wooded acres	2270	1209
Pasture acres	24	70		Pasture acres	332	349
Wetland acres	2	0		Wetland acres	79	30
$/acre	$4,146	$3,861		Avg $/acre	$3,040	$2,937

 

To learn more about the current land market, begin your search here:

Southwest-Wisconsin-Real-Estate.com

All data was taken from the SCWMLS. Because this article was intended to review the rural land market, properties smaller than 15 acres (residential lots) and commercial land sales were not included.

 

Jay Frazier – Broker Associate with First Weber Group Realtors