Now May Be The Best Time To Sell Your Land

Don't Miss Out: Skyrocket Your Land's Value Amidst Market Turbulence!

Market Challenges and Opportunities

Farmers and landowners are presented with a unique opportunity in these current market conditions. The U.S. average farm real estate value, encompassing all land and buildings on farms, has reached all-time high of $4,080 per acre, showcasing a 7.4% increase over the previous year. This trend signifies a strategic window for landowners to maximize the value of their properties if they are looking to sell.

Digging into the details, the surge in agricultural real estate values is not uniform across the nation. Regions with high-value crops like wine grapes and tree nuts in California and areas experiencing urban development pressures, such as the Northeastern states, exhibit the highest real estate values. Additionally, states like Kansas, Indiana, and Nebraska have experienced remarkable double-digit percentage increases, highlighting the potency of the current market for agricultural land.

High Cost of Living Is Driving Domestic Migration

In our home territory of Oklahoma, we are witnessing an increase in land value prices as well. According to the National Association of Realtors we are ranked 10^th in the nation for domestic migration in 2022. This is a strong indication that families and individuals are looking to purchase land in states that still have a relatively low cost of living despite increasing economic pressures. The land market is extremely active at this time, which is good for anyone looking to sell their property.

Moreover, cropland values, a key indicator of agricultural real estate health, have surged to an average of $5,460 per acre, an 8.1% increase over 2022. This upward trajectory demonstrates the resilience and potential of agricultural land as an investment avenue. Pastureland values, too, have witnessed a robust increase, averaging at $1,760 per acre, marking a 6.7% rise over the previous year.

Cash rents, often a lagging indicator, have also climbed, presenting challenges and opportunities for producers and landowners alike. These market shifts underscore the importance of strategic decision-making for those involved in agriculture, as both land costs and rental rates play pivotal roles in shaping operational margins and profitability.

Future Market Trends Uncertain in 2024

But what does this all mean for some one who is on the fence about selling their property? In 2022, record farm land sales were a highlight, and the trend has continued in 2023 (albeit at a smaller percentage increase). However, the market’s future in 2024 is uncertain. Experts like Paul Schadegg from Farmers National Company are cautious, expecting some stabilization in land values. Strong commodity prices and limited supply were key drivers in 2022, but how these factors adjust will influence auction prices.

Mike Walsten predicts a potential correction in 2024-2026 if commodity prices decline. However, not all properties will fetch high prices, with some auctions having ‘no sales’ due to unrealistic price expectations. This adjustment period is seen as normal after a period of sharp price increases, which means potential sellers should be aware of the timeliness of maximizing their land values before they shift yet again.

Conclusion

In essence, amidst the complexities of the real estate market, the soaring values of agricultural land offer a silver lining for land overs. Now more than ever, it is crucial for sellers to leverage this opportune moment, ensuring they make informed decisions that maximize the value of their land. For those considering a transition, whether it’s selling unwanted, vacant, or inherited land, the current market conditions provide a favorable environment for making the most of your property’s worth.

3D Conservation Group is here to assist you in navigating these intricate market dynamics and empowering you to make the most of your land investments. Our mission is to offer landowners access to fast, easy, hassle-free cash transactions while preserving the natural beauty of their property for future buyers. Get started by applying for a free, no-obligation cash offer today!