Wingert Realty Land and Services Mankato MN

First Half 2018 Land Sale Summary

 

Land values declined slightly in the first half of 2018. Compared to the January 1 – June 30, 2017 period, average sale prices were down approximately 2.5%. The first quarter had strong purchaser interest and sale prices, but attitudes and values declined largely due to excessive rains that lowered yield expectations, declining commodity prices, rising interest rates, and tariff talks that left markets uncertain.

 

Sellers were primarily driven by estate management. Of the 50+ properties we sold, which are included in this summary, 76% of sellers sold to finalize family estates, 18% sold to take the cash or exchange into other assets, and 6% were required to sell to reduce debt.

 

Investors have been less prevalent purchasers to date in 2018 in comparison to 2017. Investor purchases represented only 24% of our sales, a marked decrease from prior trends. Expansion farmers, while concerned and cautious, represented 74% of our sales.

 

One sector of the land market with increased demand was the natural resource sector. Sand and gravel pits that have been dead assets for the last 8+ years suddenly came alive as the urban economy improved and construction increased. Users of sand and gravel seek accessible supply close to urban areas. During the first six months of 2018, we sold five gravel pits. 

We had a few miscellaneous sales of interest: 
 -         Wooded building lots close to town are back in demand and bringing strong prices.
-        The beginning farmer program was utilized in three sales.
-        Grassland hunting and rec properties are still a tough sale. Most hunters want wooded deer hunting habitat.
-        Conservation groups and governmental agencies are in the market for land that can be restored to either wetlands or pollinator habitat. 

We hope you find this information useful. If you have any questions on the properties sold or if we can be of service, please contact us at 800-730-LAND (5263).