The 2018 Land Markets Survey by The Realtors Land Institute and National Association of Realtors Research Group showed a 2% year-over-year increase in land sales and a 2% increase in land prices between October 2017 and September 2018.
Although an increase was seen for both land sales and prices, growth was at a slightly slower rate than the previous year, according to the survey. Among the reasons cited for the slowdown:
- Rising interest rates
- Negative impacts of the trade war
- Depressed commodity prices
The survey found properties were sold in a shorter time frame than in previous years with land typically on the market for only 90 days, compared to the 95 to 100 days seen in past surveys.
Among the findings:
- The median price of land per acre decreased to $4,500 from $5,500 in the October 2017 survey.
- The median acreage sold decreased to 53 acres from 58 acres in the 2017 survey.
- All cash sales were the most common type of financing at 41%, followed by debt financing at 31%. Local banks, regional banks and agricultural credit cooperatives accounted for 68% of financing.
What about 2019?
- Respondents expect to see slower land sales in 2019.
- Respondents listed financing and zoning issues as the two major issues affecting land sales.
- Other issues facing the industry include a lack of comparable land values, appraisal issues and rising interest rates.
The annual Land Markets Survey is a tool for landowners and land real estate professionals in all sectors of the business to use for bench-marking and as an informational resource when conducting business. This year marks the sixth consecutive year that the survey has been conducted; and this year’s survey had the highest participation rate so far.
Source: Realtors Land Institute, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.