Kirkpatrick & Co. is pleased to present our annual report on farm sales in the Bluegrass region. First, we’ll explore the statistics & trends in Lexington-Fayette County before turning our attention to the rest of the region. What was the average price per acre for farmland in Scott County? What was the top farm sale in Bourbon County? Read on to find out.
FAYETTE COUNTY
SALES VOLUME
33 farm properties (10+ acres) totaling 1,449 acres closed for $45,287,933 in total sales. This is markedly less than in 2022, when over $82M transacted, representing 3,371 acres.
PRICE PER ACRE
On average, an acre of land sold for $31,237, a 28% increase over the 2022 figure. The average per-acre price for farmland nationally is just over $5K (and $4K statewide).
CASH TRANSACTIONS
58% of closed properties were cash transactions, 11% more than 2022.
DAYS ON MARKET
24% of closed farms sold in less than 2 weeks, while a nearly equal portion took over 6 months to sell.
SUPPLY
During 2023, 60 properties were actively listed for sale, a 25% decrease over 2022 offerings.
SALE TO LIST
Farms tended to close for slightly above listing price, for an average of 100.57%.
TOP SALE
5275 Paris Pike | 317 acres | $7,000,000
ALSO OF NOTE…
72% of total sales volume closed in Q3 & Q4.
3/4 of properties were sold by local firms, not franchises.
1 in 4 closed properties were protected by a conservation easement of some kind.
REGIONAL OUTCOMES
OUR ANALYSIS
Short supply hampered volume while boosting the average price-per-acre and list-to-sales price ratio.
The market reflected seller reluctance, even for properties likely to attract cash buyers and thereby less affected by interest rates.
Volume appears to be increasing, however, with 72% of 2023 sales volume closed in the third and fourth quarters. Economic mood, as ever, weighs heavily on the market, with the upcoming presidential election sure to bear an impact.
Turnkey properties remain in high demand due to construction costs.
Sellers can capitalize on market conditions in 2024 by attracting qualified cash buyers. Read how here.
Buyers are encouraged to develop a relationship with an experienced buyer’s agent. Experience in uncovering unlisted or privately-listed properties is essential in a low-inventory market. A skilled buyer’s agent can also help you develop favorable terms beyond sales price.
Our up-to-the-minute analysis of the market is a hallmark of Kirkpatrick & Co. expertise. We’d be pleased to place your property in context with an in-depth consultation.
Don’t miss our report on the premium/luxury residential real estate market in Lexington, Kentucky. We analyzed all sales over $1M. View it here.
