What will the new year bring for Ontario farm sales and farmland values? See our predictions below.
As we enter 2024 we want to extend our sincere wishes to all our valued clients and those considering working with us. We appreciate your trust in our services and look forward to another productive year together.
2023 Review of Ontario Farmland Values & Transaction Activity
The past year was challenging due to the dynamic real estate market. Rising interest rates significantly impacted transaction volumes, leading to a reduction in overall activity. Despite these conditions, land values showed modest growth overall. Prime properties consistently attracted interest, requiring little time on the market and achieving competitive prices.
2024 Outlook for Ontario Farmland Values & Transaction Activity
It wasn't that long ago that we saw back to back years of rapidly increasing farmland values, 2012/2013. After that market peak, we did not see a decline in farmland values, however, what makes this most recent period, 2021/2022, of rapid farmland value increases different is that interest rates increased dramatically over a very short period of time. Although the cost of borrowing has been impacted considerably, this higher interest rate environment appears to have been incorporated by the marketplace, resulting in fewer transactions while farmland values returned to more modest growth levels. The continued demand for Ontario farmland underpins our forecast, in addition to the market's adjustment to the high borrowing costs and anticipation of declining interest rates. We predict 2024 will see sustained, modest growth in farmland values, with increased activity expected later in the year as rates are expected to decrease.
As we move forward into the new year, we are committed to providing professional and effective services to best serve our clients. We thank you for your continued support and partnership.
Cheers to a prosperous 2024!
Where will Canada's farmland be in 10 years?
Explore Canada's Farmland Future!
Dive into the latest interview with experts Brandon Wilcox (S.W. Irvine & Associates), Kim Passmore (S.W. Irvine & Associates), Jean-Philippe Gervais (VP & Senior Economist at FCC) and Ben Van Dijk (Realtor with Farm Real Estate) as they dissect the future of farmland values in Canada. This insightful discussion blends historical analysis with future forecasts, unveiling the factors reshaping agriculture. Discover the effects of urbanization, inflation, and how a diverse range of market players are influencing farmland markets.
Highlights Include:
Rising Farmland Values: Delve into the reasons behind escalating land prices.
Market Dynamics: Understand the varied influences on the farmland market.
Legacy and Inheritance: The crucial role of passing down farmland to future generations.
PS:
Ever had questions about farm appraisals? You’re not the only one! We’ve answered some FAQ’s for you here: Farm Appraisal FAQs.
Don’t forget, we’re here for all your farm valuation needs. Contact farms@swiappraisals.com or call 519-763-5956 to discuss your farms’ plan for 2024!
Want to skip the back and forth? Request your farm appraisal directly: Request Farm Appraisal
DISCLAIMER: The predictions of farmland values for the upcoming year presented in this newsletter are solely the opinions of S.W. Irvine & Associates. These opinions are for general information purposes only and should be regarded as such. They are based on our analysis of current market trends and historical data, but they do not constitute guarantees of future performance. S.W. Irvine & Associates, is not legally bound by these opinions, and they should not be used as the sole basis for any financial decisions.
For individuals or entities with a more vested interest in the precise value of specific properties, S.W. Irvine & Associates offers professional appraisal services. Our team of experts can provide a detailed, property-specific analysis to help you make informed decisions. For more information please contact us at farms@swiappraisals.com | 519-763-5956 or submit your appraisal request here.
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