Land Prices are Lower!

crop rowsSpring planting will be going in full gear soon and may start one thinking about the cost of land in Iowa.

Recently the Iowa Chapter of REALTORS® Land Institute published their March 2014 Land Trends and Value Survey for bare, unimproved land with a sale price on a cash basis.

Land Prices have gone down for the first time since 2009. High quality crop ground averaged $11,104/acre which was a drop of 5.4% or $570 from September’s report in 2013. The largest drop was in the SE corner of the state but all 9 regions saw lower prices.

Lower commodity prices, higher input costs and higher interest rates contributed to the lower price per acres.

Below is the chart of changes of land values provided by the Iowa REALTORS® Land Institute.

graph 4-9-2014Is this a one-time fluke, or a trend? We will have to wait and watch …. However, you do have to remember that this is not a sticker prices for land. There are other variables which may and will determine what certain land may go for. Please contact me to help you determine what your land is worth.

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