OVERALL MARKETS – The Federal Reserve again lowered their interest rate ¼% (25 basis points) during their September meetings. Potential slowing of the overall economy and trade issues continue to be the largest concerns. There continues to be much debate whether to expect further interest rate reductions as we close out the year. Fall row crop harvest has begun in the southern corn belt and just beginning in the northern corn belt.
BUYER NEEDS – If you have 2.5 to 10 acres of buildable country land in Dakota County, we have several buyers looking for small country acreages to a build home.
We also have buyers looking to purchase single family home lots in Hastings city limits.
RESIDENTIAL – With mortgage rates moving around, one of the frequent questions we are asked is “Should we refinance?”.
We wish there was a simple answer. However, the decision to refinance your home depends on many factors including how long you have lived there, how long you intend to stay there, current interest rates, are you paying mortgage insurance. You will then want to look at how long will it be to recover your closing costs you are charged for refinancing. Some cases, refinancing is a wise decision and in others it may not be a great plan. If this is something you have been questioning and would like to discuss your situation, please reach out to us. We can provide modest information and steer you to an accountant that can provide in depth details.
LAND & FARMS – Current reported early corn yields from across the southern corn belt (southern Indiana, southern Illinois and Missouri) are in the 130 to 260 bushels per acre. These are lower than last year but, so far, appear not as poor as many expected earlier this year. Corn yields across the Mississippi Delta are reported as average (130 to 160 bushels per acre). Locally, we are seeing very early soybean harvest begin. Regarding land values, we continue to see demand for higher production land (irrigated or pattern tiled) values holding in the $7,000 to $10,000/acre range dependent upon location. Investors and farmers with cash/lending availability continue the trend of buying. Average to below average productive land values appear to have stabilized. As expected, we are starting to see more farmland for sale across southern MN and northern IA.
As always, we want to THANK YOU. We enjoy sharing with our clients the knowledge and experience you will need to be successful in the marketplace while reaching your personal and financial goals. If you or anyone you know may be thinking about buying/selling land or a home, give us a call.
Patty Zuzek and David Pope