Recreational Land Buyers Are On The Hunt Again
Farmland Holds Steady Plowing Over 2012’s Record Highs
October 07, 2013 // Franchising.com // KANSAS CITY, Mo. – While the real estate industry saw farmland selling at all-time record highs last year given its strong economic justification, this year’s story appears to be the return of more discretionary land purchases. According to United Country Real Estate, the nation’s largest seller of non-urban real estate, recreational property sales are up double digits compared to 2012.
"We are seeing great things in the recreational land market this year," said Jason Cole, chief financial officer with United Country Real Estate. "Over 2012, there has been a 54 percent jump in recreational land sales volume year-to-date."
"This is an extremely important indicator as to the direction of the overall economy and specifically, real estate," said Mike Duffy, president for United Country Real Estate. "Although returns on recreational properties have proven steady and consistent long-term growth, a large portion of the overall value comes from the owner’s recreational use. When the economy contracted during the recession, the record yields on farmland drove strong demand and price appreciation throughout, while more modest returns on recreational land and consumer uncertainty depressed sales. When consumers feel confident enough to make large, more discretionary purchases such as recreational property, it means they are feeling more comfortable with their financial outlook."
Additionally, August showed that the more return driven interest in farmland and ranches is not ready to slow down. United Country saw an amazing 80 percent increase in sales of agricultural property in August versus the same month last year. And not only were investors buying up land in August, but they were doing so at higher prices, which continued to increase through August and remained near the record highs of 2012. Average farm and ranch sale prices were up 9.2 percent overall through August versus 2012.
For more information about United Country Real Estate, call 800-999-1020 or visit their main website at UnitedCountry.com.
About United Country
United Country Real Estate is the largest fully integrated network of conventional and auction real estate professionals in the United States, Mexico and Central America. The company has been an innovator in lifestyle and rural real estate marketing since 1925. United Country supports nearly 550 offices across the U.S., Costa Rica, Panama and resort areas of Mexico, with a unique, comprehensive marketing program that includes one of the largest portfolios of property marketing websites, multiple United Country real estate catalogs and third-party lifestyle magazines with national distribution, an extensive buyer database and other national advertising of local properties that reaches more than 90 million homes per week. United Country has recently been recognized by Franchise Business Review, AllBusiness.com, The Land Report, Entrepreneur and The Wall Street Journal as one of the top U.S. real estate companies.
SOURCE United Country
2820 NW Barry Road
Kansas City, MO 64154