2020 is shaping up to be an excellent year for the ranch real estate market in Montana as the rural and recreation property is a preferred investment class.
Inventory has been limited for good to excellent quality Montana farm and ranch lands. Demand from buyers has subsided with lower cattle and grain prices impacting optimism. Recreation lands and lifestyle properties in southwest Montana continue to show improvement in activity and sales.
Taking a closer look at the ranch real estate markets, we observed the following trends.
Working ranch prices remain strong but are still slightly below the highest prices(2006 – 2008). The decline in cattle prices resulting in lower demand for cattle ranches. The inventory of working ranches in southwest Montana continues to be tight.
Lack of inventory remains one of the biggest issues for Buyers looking for smaller acreage recreational property.
Demand for rural property is very strong.
Buyers have the greatest interest in farm and ranch properties that generate income that can be used to off-set ownership expenses.
Buyers are searching for property that is adjacent to public land.
Buyers are seeking properties with Water Rights, or with live water or improved ponds.
Buyers are increasingly considering proximity to airports and towns when looking for farm and ranch property.
Buyers seek property that is not already encumbered by conservation easements, although the amount of discounting for conservation easements is declining.
We expect the ranch market in Montan to remain active. Demand from buyers is driven by income consideration and value. The lack of other investment opportunities will keep Buyer demand strong.
Category : Ranch Articles