Last week our 2019 auction schedule kicked off in earnest. Three auctions in 3 different parts of the state all experienced nice crowds and lots of bidding. The prices achieved were fair market and in line with the land values in 2018. The market appears to be maintaining a sideways trend as it has for the past 2+ years.
One change for Halderman is that we have almost 3 times as many acres for sale this January-February versus the same time period last year. Other real estate companies report increasing sales volumes as well as demonstrating that the volume or supply of farms for sale is picking up. This is a change in the overall market trend of the past three years where the supply of farms for sale was well below normal. The low supply is one of the supporting factors for farmland values during the declining farm incomes.
The reason for these farms selling is primarily life change events. Some are financially motivated, but the majority are being sold because the ownership is changing and wants to deploy their assets in another direction. Will the increase in volume lead to lower sales prices? Maybe, but based on the interest at our auctions and the resulting sales prices, demand remains solid at the current price levels.
If you are thinking about selling your farm this spring, now is the time to make a decision. Call your local Halderman Area Representative or me in our main office at 260.563.8888 to talk about your specific needs, your property and your options.