By John Ince
About two months ago a local publication interviewed several Brokers who specialize in farms and estates, myself among them. After sending in my answers I was a little concerned that I had sounded too pessimistic, reflecting on a slow market, concerned that this new generation of near retirees did not have the same desire for country living that has driven this exciting segment of our local real estate market for decades. When the article came out it was clear there was a consensus among all the Brokers that activity was slower than expected, especially when compared to a vibrant residential market.
Apparently the sluggish market was at a tipping point as we have seen a flurry of activity in the last two months. Jump started by a round of significant price drops, several large farms have gone under contract recently in Albemarle, Greene, Madison and Orange counties. Many were properties that had been on the market for two or more years that were now generating excitement and offers. There were 25 sales of properties over $750,000 with more than 15 acres in the last six months and there are currently 18 similar properties under contract in our market area.
Several factors have come together in the last year to help with the farm and estate market. The robust stock market has improved net worth and confidence for affluent buyers. The booming residential market in Charlottesville has restored faith in real estate ownership in general as an appreciating asset and most sellers have come to terms with realistic pricing making investing in country property an understandable value proposition.
As the real estate market reacts to supply and demand, the farm and estate market typically lags behind, responding more slowly since immediacy is rarely part of the buyer profile. Recent activity is encouraging and seems to be indicating that the buyers are back in the picture. If inventory fails to keep up with this increased demand we should see prices begin to rise for farms and estates and rural property in general.
My advice to sellers is to strike while the iron is hot.. while out of town buyers are in town enjoying our beautiful countryside and Spring weather. Now is the perfect time for a price reduction to stimulate activity among buyers ready to pull the trigger once again. Here are some of my current offerings with recent price reductions poised to take advantage of an improved market:
- Misty Ridge – 20 acre Keswick horse farm Reduced $100,000 – View Listing
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Brills Shop Farm – 191 acre grazing farm Reduced $100,000 – View Listing
- Octonia Highlands Farm – 82 acre farm in the South River Valley Reduced $100,000 – View Listing
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Etlan Road – Spectacular Madison County Farm with views of Old Rag, Reduced $15,000 – View Listing
John Ince is an Associate Broker with Nest Realty. He is our country property specialist with three decades of experience in farm and estate brokerage in the Charlottesville area. He is a respected expert in the farms and estate field of real estate and is happy to answer questions about horse farms, cattle farms, vineyards, raw land, or just a nice place out in the country. To learn more about John, visit his website, CharlottesvilleCountry.com