Real estate expert says rise in land value, sales to slow
A real estate expert with Farmers National Company expects land values to stay firm for the rest of the year but says the number of sales could decrease.
Randy Dickhut (Dick-hoot), senior vice president of real estate, tells Brownfield a combination of high commodity prices and low interest rates for buyers, paired with strong land values for sellers, has led to an active land market.
“As long as those factors are still in play and there’s nothing new on the tax policy changes, whether it’s prompting sales or to keep the land that will change a lot, I think we’ll see those firmer land markets,” he said.
But Dickhut said if interest rates rise, it would put a ‘damper’ on the market.
“Right now, it doesn’t look like that will happen soon,” he said. “You know, [within the] next year or a year and a half or so according to the Federal Reserve.”
Dickhut said uncertainties like decreased trade and expected lower farm income next year might also limit buyer participation in the land market.