Fewer Faces Larger Spaces
With the whole situation with the virus, consumer buying habits have all changed this past year more than ever in the past. As people move to fewer faces in bigger spaces it is also translating to buying habits in the real estate market. This week we’re looking at the number of acreage properties that have sold compared to the last 10 years. Every buyer and seller has their own reasons for purchasing or selling their own property and everyone's situation and motivations are different. People being stuck more and more at home and less traveling seems like it is causing buyers to crave some additional space whether for toys, farming, or even just putzing around to stay busy.
So far in 2021, the total volume number of sales so far for homes 1 acre or more was 128. This is in comparison to the entire year in 2020 of 185 sales. This year nearly halfway through depending on whether enough supply comes available, we should blow past that number and are well on the way to passing 2016 figures of 217 sales and only 37 sales away from surpassing the 10 year average of sales
Not only measuring volume we’re also measuring dollar value as prices have increased rapidly this past 18-months. For the past 5 years the yearly average for total volume of acreages with 1 or more acre sales was $212 Million. 2020 ended with $277 Million in acreage sales. So far in 2021 acreage sales have accounted for $220 Million in sales.
In 2020 the average sale price for acreages was around the $1.5 M mark, in 2021 it is has increased to $1,718,750. Supply and demand or maybe it's inflation regardless prices have increased.
Some sellers are looking to cash out now not knowing when the market will peak.
Have a great week and feel free to reach out!
-Mark