Land Prices I think have Peaked!

[riders2010]

You d be kiddin yourself to think land valuation is going to go back to the way it was. Agree with above here too much world demand for other things other than food and food demand is not getting smaller and it won t. Simular land that sold for 1100 acre last year selling for 1500 this spring.

[SASKFARMER3]

Again study History boys.
Germans came with fist full of money. Got around sask laws was easy and they owned a lot of land. Guess what 90% are gone and left with a little bit of cash.
Now I do agree rider that we wont get back to the low prices when I was purchasing land.
But think about it a house in regina new 12 years ago was $200,000.00 in a very nice neighbourhood. Today same house is $750,000.00
Where will it drop back to probably 250,000.
Land today at $360,000.00 to $250,000.00 will probably drop back to 150,000 and 80,000.00
Because of one big reason. Its happen in the last century three times you think it cant happen again.

[newguy]

Most areas of land that is near to
population of people is worth the most
money. Any land in Sask that is very
good producing or close to a growing
population will not come down any from
current prices. Land that is further out
and is only average dirt has probably
reached it's limit and may go down some
if things really go bad. But Sask is now
part of the global picture and if things
do go bad farmland may be where people
rush to put even more money to.

[boarderbloke]

If land prices go down on the praires, it'll be like a big neon sign flashing "On Sale" rather than "For Sale",,,"Roll Back Prices". Really, there isn't much land here when one thinks about the global wealth, bidding on land, from around the world. The other big part is government stability. Africa might have good cheap farmland, but how stable is it there? Also SA, but look, they currently have a socialist government in Argintina, resricting farmers from selling/storing. And Brazil with it's transportation problems. The farmgate price of soybeans has droped to $3-4/bu because of the trucking freight(loaded trucks waiting days or longer) and buyers passing on the demurrage from waiting ships.
Prairie land may still seem like a good deal in the long run.

Won't "globall warming" make it even better in the future with longer seasons and the potenial to grow corn! (sarc off)

[ado089]

Newguy, A couple of weeks ago you were
embracing the moisture because of your
dry sandy dirt in eastern Alberta and
this week "our land prices in sask will
never drop" You seem a little confused
about where you live.

I always get a kick out of folks that
think the value of something can never
go down and the shock and surprise that
ensues when invariably it does. When
bubbles pop the values always drop at
least to starting point if not lower.
Double digit year over year growth is a
pretty good indicator of a bubble.

Smart acquisitions are always good so
I'm not saying growing even when it's
expensive to do so is a bad idea, but
growing aggressively during these times
usually is. I personally am going to
chuckle when these big swingers get
their ***** slammed in the door.

As for Saskatchewan my beloved
home...It's still an indian infested
shit hole that is frozen 7 months of the
year, a fancy night out is still
considered Earls and the Chinese buffet
is the extent of our cultural diversity.
There is no where closer than 6 hrs to
the mountains and direct flights out of
here are hard to come by. There are next
to no major corporate head offices and
our economy, as diversified as everyone
thinks it is, is limited to being
diversified across several different
commodities. Once the building boom
implodes on it's self and commodities
drop off as they always do our fair
province will clear out again. But hey
if you're such a believer I have 7
quarters 45 minutes from Saskatoon you
can have for a steal at $1.75 million.

[newguy]

Ado .Think you are confused. Never said
land was going up I never said I was
buying. Just saying land near growing
populations will hold it's value.
Sometimes you have to look at history as
Sask farmer says but I say look at Alberta
who has been through this a few years ago
to tell you what is happening here.

[riders2010]

wow that is a steal of a deal for 7 quarters why not list it bet she d be sold in a heartbeat especially if you found someone to rent it back.

[charliep]

Living in the bubble you talk about in Alberta, I would cautious in your assessment of land around cities and up/down highway 2. Your driver of value is more the general economy and peoples willingness to invest in an asset. A general slowdown in the economy that forces people to look for funds quickly to look after gaping holes in other aspects of their financial life could drop these values quickly. Long term, you may be right in terms of asset values but you have to survive the short term. If you own your land free and clear, then the price is just a number you can brag about unless you are planning on selling. The interesting difference between a net worth (actual value of your land included) and your balance sheet (land valued at cost).

[riders2010]

What does farm land sell for at different places in alberta?
Calgary to Edmonton Area
East side of province
South side of province
Peace area.

Are land values exactly the same on the sask alta border in each province?

[charliep]

Here is a look at some Alberta numbers. Don't have Saskatchewan ones. Be careful when looking at value as some non arms lenghth/family transactions may be in the mix. Also look at number of transaction/acreage.

[URL="http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sdd1504"]Alberta Land Prices[/URL]

[AlbertaFarmer5]

Prices here range from under $2000 to
almost $3000 per acre with some
exceptions much higher. The price
difference usually has more to do with
the recreation value than the farming
potential. Many quarters around here
now belong to weekend warriors from
Calgary, which is about 1 1/2 hours
south of here, where prices are
multiples of our prices. Much of this
land has oil revenue. lots of jobs
within driving distance. Mountain view,
very close to the edge of the
farmland/mountains. Closer to highway
2, prices are closer to $5000 from what
I've heard. Not many sales that I see,
likely a lot more private sales.

I have no idea when it will/has peaked,
except that I have heard that prices are
too high, and sure to correct since the
late eighties. Of course I've also
heard that they aren't making any more
of it, but last I checked, they are
making a lot more of it in SA and
Africa.

[BTO_farmall]

SF3,

You Be Ever So Kind and Tell Me Who This Lady is From Ontario????? Or Even The Business Name, Oh n' What About a Phone Number????? Anything Will Do, Thanks Appreciate it Man!!!!!!!!!!!!!!!!

[SASKFARMER3]

BTO thinking of selling!
Ill get it by end of today as its a relator in Saskatoon. I cant spell his name.
They are buying, but lower valued land. Their paying between 129 and 180 plus renting it back to the owner if he wants. Cash takes a while but it comes in end. Week or three late.
Big purchases in 360 range are for 80 assessment to 97. that's locals or investor group out of Ontario.

[BTO_farmall]

La da da dee da do, La da da dee da do, La da da dee da do, SF3, Sitting Here Waiting Patiently 4That #, La da da dee da do, La da da dee da do!!!!!!!!!!!!!!!

[Oliver88]

So if land that is accessed 80-97 is selling for
$360,000per quarter, what kind of $ are these
investors asking for a cash rent?
(At 5% return it would be $112.50/acre based on
a 160 acre quarter.)