Perspective on Area Land Values
By Larry Theurer, Broker/Owner
Theurer Auction/Realty LLC
Land prices in the last half of 2015 decreased as compared to the first six months of the year. Higher quality land is still very much in demand with prices for this type of land being down 5-15%. Lower quality land prices appear to be 10-20% lower; and in some cases where minerals have been sold off or were being retained, prices were as much as 15-20% lower as compared to the “high times” of 2014 and 2015.
Lower grain and livestock prices have potential buyers re-evaluating their thinking on land values. Additionally, oil lease money received in 2010-2014 has totally disappeared. Millions of dollars in lase money poured into the area and was used to reduce debt, purchase new equipment, and to buy land. Those dollars have long ago been spent. Cash flow has drastically changed in the last six months.
Some land economists predict land values will continue to drop until commodity prices rebound. Right now, there is an overabundance of grain stocks in the world, thus experts don’t look for a quick upward surge in grain prices anytime soon.
In 2015, Theurer Auction/Realty sold over $10 million in land in Sumner, Ellsworth, Franklin, Lincoln, Butler, and Kingman Counties, Kansas, as well as Grant County, Oklahoma, and Gentry County, Missouri. Our clients included individuals, corporations, trusts, and estates. There are buyers still looking to buy land — whether they are individuals or investors — land is still a good investment.