Land prices

What are land prices doing in your area? Around here they have gone up a solid 33% in the last 1.5 years and close to doubling from Jan 2020. Grain prices will go down. I believe most buyers care little to nothing about return. My Grandpa used to say in the 40's and 50's land needed to pay for itself in 3-5 years because that was the longest any bank would give a loan for. I am grateful for what my family has. I believe around here the days of an average Joe buying a place are over. Too many city people with money or big farmers.

It's unaffordium here of you can even find it. We have sub optimal ground and it's over 5k an acre. No one cares about returns on farming they just invest in the land itself.

They have gone crazy here. Some places tripled. Too much make believe money from stock market . Biggest thing driving prices are hedge funds and money managers buying up real estate , then renting or leasing. ENTIRE subdivisions are being bought then rented out. Big story of last week about how neighborhoods are being destroyed. The property owners don't vet the renters. Drug lords and gangs are renting and using them for stash houses. It's just another nail in the coffin the dems have provided with the free money they keep throwing out.

https://www.wptv.com/money/real-est...squeezed-by-investment-firms-hedge-funds

https://nypost.com/2020/07/18/corporations-are-buying-houses-robbing-families-of-american-dream/

About $3500 - 4000 an acre for pasture / timber around here. Lots more for crop ground

A friend just had a four acre piece he was giving to his daughter appraised at $387,000. You can't buy land or rent a place around here. It is because of people fleeing the cities,selling their houses there and coming here with a pocket full of cash. Our average wage is about $20 an hour, locals can't afford to buy or rent anymore. Fortunately we own ours free and clear.

I never put prices in the original post. $4500-$5000 and it doesn't really even matter anymore if it is timber, brush, farmed, pasture. A year ago we bought a piece that joins us. From initial contact to deal was 5 months and the owner raised the price $300 per acre. Was slightly discouraging at the time but a real bargain now.

Same in NE. A friend paid 85k for an old trailer house with a nice 3 car garage. He sold it 2 weeks later for 150k to a guy from Denver. More dollars than sense.

SIL just had two lots appraised to settle an estate. Each lot was less than an acre with older house trailers on them, rentals.

187,000 each! . I wouldn't even give the 87,000.

When there are cash buyers, loans and interest rates don't matter at all. People with large amounts of cash and want to diversify their assets are not so worried about a big return. They want what they believe to be a stable investment that pays better than .5 to 1.5% like CDs, bonds etc. Sure the land values could drop but their believing that land is less volatile than the stock market or interest rates for that matter. Many are not looking to be flippers like the housing market. Most want to park their monies there for longer terms. If you put a few million in the stock market in the mid 90s and let it ride for 27 years you would have some real money to bid on land. Capital gain taxes at an all time low allows for a lower cost to sell as well.

Bryce

BUT if history repeats itself there will be a sad day coming. The cost of goods will eat up the extra money at some point and the world will correct. Might not be as bad as 08 but it will be close...

80 acres with run down buildings went for $11,200 a acre a couple weeks ago. Local farmers bidding. I think they are crazy.

Lately around here land has be selling for 10 to 15 thousand per acre.

Can't be farmers bidding up land, everybody knows they don't make any money.

It can still be found reasonable around here.

Here's 14 acres for $26,900 on the next road over from where we live.

https://www.landwatch.com/yalobusha-county-mississippi-timberland-property-for-sale/pid/412783719

I’ll bet land is still pretty cheap in northern NY unless it qualifies for a reduced RE tax exemption.

Who do you think stripped the car lots empty of new pickups? Who do you think buys new tractors, combines, planters? I hope your comment was sarcasm.

In my area the old price held at $1,200 to $2,000 per acre. The current price is a minimum of $10,000 per acre. House, buildings, pond, stream, or any other improvements add to the cost. People list any possible feature including trail camera photos and add to the price. Recently three adjacent unimproved waterfront lots that totaled less than 1 acre in a private gated community sold for $750,000.

Based upon county politics it can be very difficult to get any break on real estate taxes based upon timber production land or agricultural use. Even if they grant it, they quickly remove claiming that the landowner needs to requalify. Is it right, no but they get away with it because nobody has yet sued them. Plus, they had an old guy who was there since land was invented who made up rules to cheat landowners. Thankfully he is no longer there. We reported them to the state auditor, state representatives, and state forestry department. All is good for the moment.

An Iowa radio station was saying that land values are up as much 33% and partly do to record crop prices. Those crop prices must be here to stay?

LOL your wrong on farmers getting all the trucks. Suburban soccer moms are the fastest growing people going to pick ups. No suv so pickups. Chevy same interior as the Tahoe.

You might be surprised how many farmers lease their combines and equipment. I think (not sure) a farmer can take the entire lease payment off his taxes but has to depreciate the purchase at a lower rate.

I'm surprised the land leases for crops hasn't gone up. 99.9% around here pay 150 bucks per.

Land rents will really go up with the prices at these levels. Many will not sell land so to get more land to farm you will need to rent it and to get that land you will need to bid it up. Due to our dairy and manure issues here most land is well over $200 per acre and our yields are not at the levels of the corn belt type yields.

Bryce

In our county land rents for an average of $280 with some paying more than $350-400.

Depends on the type of land and location. City lots start at 100k and not many in that price( more lot $150k). Irrigated acres $125K acre for a minimum of 5 acres, less as acres go up, forested 5 acre minimum parcels $450K.Waterfront-don,t ask cause you can't afford it.