Real Estate Prices

DQNews - DataQuick Real Estate Headlines and Statistics -- December 29, 2005 DQNews Home | DataQuick | Forums | -- Release | Custom Reports Search -- i Updated: December 27, 2005 -- -- -- Real Estate News -- . -- DQNEWS HOME -- RECENT RELEASES Monthly for SoCal Monthly for Bay Area New! -- CA Monthly City Chart ZIP CODE CHARTS Updated Monthly: LA Times Zip Chart SD Union Tribune Chart OC Register Chart SF Chronicle Chart Sacramento Bee Chart Annual Charts: CA 2004 City Chart LA Times 2004 Chart OC Register 2004 Chart SD Tribune 2004 Chart SF Chronicle 2004 Chart Sac Bee 2004 Chart Updated Weekly: SJ Mercury News Chart California SoCal Area Bay Area -- REGIONAL CHARTS Phoenix 3Q05 Honolulu 3Q05 Las Vegas 3Q05 Portland 3Q05 Seattle 3Q05 Nashville 3Q05 Miami/Palm Bch 3Q05 Jacksonville, FL 3Q05 Denver 3Q05 Chicago 3Q05 CURRENT HEADLINES Home Sale Trends Mortgage Trends -- Foreclosures Million Dollar Homes Building Activity Other Feature Articles NATIONAL NEWS -- WEB SITE EXTRAS ARCHIVED ARTICLES -- Customized News Services -- -- Custom Reports Archived Zip Code Charts Archived Articles -- Enter your email address to receive DQNews Headlines by email: -- Who We Are -- -- -- Find Out More About DQNews -- -- California November Home Sales Report A total of 51,250 new and resale houses and condos were sold statewide last month. That's down 4.6 percent from 53,700 for October and down 3.8 percent from 53,250 for November 2004. A decline from October to November is normal for the season. full story Slower Bay Area home sales, steady price increase -- Bay Area home sales continued to slow on a year-over-year basis while prices continued to climb. . . full story -- -- Southland home sales strong, prices hit new peak -- Southern California home sales remained at near-record levels last month as prices continued their climb to new heights, the result of continued demand and the expectation that mortgage interest rates will continue to increase... full story California Foreclosures Edge Up Foreclosure activity in California showed a year-over-year increase during the last quarter for the first time in more than three years, the result of lower appreciation rates and riskier loans. . . full story Million-Dollar Home Sales Rise in Golden State -- More million-dollar homes were sold in California last year than in the two previous years combined . . . full story California's home buyers increasingly choose ARMs A rising portion of California's home buyers are financing with adjustable-rate mortgages as rising prices and rate increases earlier this year make it harder to buy. . . full story -- California Home Buyer Surnames for 2002 TOP TEN Most Common Last Names of California Home Buyers Name Rank Median Price Garcia 1 $197,000 Smith 2 $250,000 Nguyen 3 $300,000 Lopez 4 $195,000 Lee 5 $325,000 Hernandez 6 $189,000 Rodriguez 7 $189,000 Martinez 8 $197,000 Gonzalez 9 $192,000 Johnson 10 $242,000 **2002** Metropolitan Area Home Sale Charts Look up the median home price in your zip code Record sales to Hispanic home buyers Hispanic home buyers accounted for a record portion of California's home purchase activity during the third quarter, the result of socio-demographic gains and available mortgage financing. . . full story Homebuyers CA YTD2001 Rank Last Names 1 Garcia 2 Smith 3 Lee 4 Martinez 5 Hernandez -- DQNews Quick Data: $280 billion was added to the value of California's housing stock in annual appreciation last year. The median homeowner is 'making' $2,384 monthly just by owning a home. -- CALIFORNIA'S TOP HOMEBUYER LAST NAMES 2000 Rank Last Name Median price paid 2000 1990 Rank 1 Garcia $145,500 (4) 2 Smith $189,000 (2) 3 Lee $262,000 (1) 4 Johnson $182,000 (3) 5 Lopez $144,500 (7) 6 Martinez $146,000 (8) 7 Hernandez $141,750 (14) 8 Rodriguez $145,000 (6) 9 Nguyen $246,000 (13) 10 Gonzalez $140,750 (10) 11 Williams $175,000 (12) 12 Brown $183,000 (9) 13 Sanchez $145,000 (18) 14 Miller $205,750 (11) 15 Jones $179,750 (15) 16 Ramirez $138,000 (22) 17 Kim $265,000 (5) 18 Perez $148,500 (20) 19 Davis $178,000 (19) 20 Anderson $197,500 (17) 21 Martin $176,000 (23) 22 Flores $146,000 (30) 23 Gomez $147,000 (31) 24 Wilson $190,500 (25) 25 Tran $252,000 (43) CC Coming Up: Coming Up: Equity lending in Florida Washington state's $million home market Crunch for entry-level buyers - or not? Fannie, Freddie and the conforming limit (yawn...) Most boring neighborhoods: the list Texas home buyer names -- Foreclosure Sales: The number of home foreclosure sales in California was a low 709 in the third quarter of 2005. Last year there were 1,007 home foreclosure sales in the same time period. Top Lender Update: Wells Fargo Bank was California`s most active home mortgage lender in the third quarter of 2005, followed by Washington Mutual and Countrywide Home Loans - (ranked by residential loan $). Least Expensive Communities: In the 3rd quarter of 2005, the three CA cities with the lowest median price (and over 50 sales) were: Taft at $120,000, Twentynine Palms at $140,000 and Barstow at $142,000. Most Expensive Communities: In the 3rd quarter of 2005, the three CA cities with the highest median price (and over 50 sales) were: Rancho Santa Fe at $2,372,500, Newport Coast at $1,914,750, and Belevedere Tiburon at $1,765,000. Million Dollar Home Sales: 30 communities in CA had a median home price of over $1 million in the 3rd quarter of 2005 (with 50+ sales). There were eighteen cities in that category in 3Q04. Refi Trend: California residential refinancing activity in the third quarter of 2005 was up 9.8% from the third quarter of 2004 and up 8.0% from the second quarter of 2005. " -- . DATAQUICK IN THE NEWS -- Sacramento Bee Homes sales fall 21 percent Orange County Register O.C. housing prices back near peak The median sales price was $616,000 last month, $1,000 shy of August's record, and more gains will come next month, according to market tracker DataQuick. Los Angeles Times Southland Housing Sustains Solid Gains San Francisco Chronicle Bay Area boom easing Home sales slow a bit but price growth is still strong San Jose Mercury News Home price spiral eases MEDIAN PRICE IN SANTA CLARA COUNTY JUMPS ONLY $750 FROM MONTH AGO AS SALES DROP 5.8% San Diego Union Tribune Home sales have seen better days Prices up, but seasonal activity down for 17th straight month San Francisco Chronicle Foreclosures in Bay Area down 13% to a 14-year low Rapid increase in prices has helped reduce rate of default Los Angeles Times Loan Default Notices Rise for First Time in 3 Years New York Times Do Try This at Home: Assess Your Area's Real Estate Bubble Forbes Real Estate Strong Despite Higher Interest Money Magazine Cuckoo for Condos! USA Today Got $75M? Here's the house for you USA Today 'New urbanism' embraces Latinos Can't Find Sunday's Newspaper? Find your zip code here! LA Times 2001 Chart LA Times Zip Chart SD Tribune Chart OC Register Chart SF Chronicle 2001 Chart SF Chronicle Chart Sac Bee 2001 Chart Sacramento Bee Chart Updated Weekly: SJ Mercury News Chart -- DQNews Forums -- enter here -- -- View the DQNews News editorial policy. -- Contact us at info@DQNews.com | DQNews Home | DataQuick Homepage

buy property, the agent

The Peoples Guide to Mexico: Real Estate in Ajijic and Lake Chapala, Mexico People's Guide Homepage • Copper Canyon • Live & Retire • Carl's Notebooks • Letters • Favorite Books • Visit our Sponsors • Table of Contents • The Best of Mexico: Favorite Places Live & Retire in Mexico Lake Chapala area Buying Property in the Lake Chapala Area by Tony Harries & Teresa A. Kendrick In the last decade or so, it is estimated that more than 10,000 foreigners have purchased property on the Northshore of Lake Chapala. Long prized as a weekend retreat by wealthy Guadalajarans, the villages from Lake Chapala to Jocotepec now boast an expatriate community said to be the largest in the world. Ajijic has become the prime location for foreigners because of its infrastructure of services, such as internet access, and the existence of the Lake Chapala Society, an English-speaking resource center for newcomers and residents. The Real Estate Climate on the Northshore At present, the Northshore has 20 real estate agencies. Their level of competency and expertise vary. In Mexico, the real estate industry is not regulated by the government. It is self-regulated. Two associations are responsible for training agents and policing the ethics of the agencies: AMPI (Asociacion Mexicana de Profesionales Inmobiliarios) is the national organization (with a lakeside chapter) and Gil (Grupo Inmobiliario del Lago) is the local organization. Many offices belong to one or the other, and some belong to both. They provide multiple-listing services that allow agents to show properties listed by other agencies, an advantage for both buyer and seller. The most professional agencies also provide their own in-house training for new agents. Several agencies have websites that will allow you to get a feel for the company, the houses that are available and the prices of property and land. The websites allow you to interact with the agency via email, and, if the site is good, will offer background information and answers to frequently asked questions. It can also provide you with the name of an agent. Choosing an Agent Good agents tend to work for well-run organizations. When walking into the office for the first time, take a look around. Does it look professionally managed? Are key personnel bilingual? Are listings photographed, detailed and organized so you can spend time reviewing available properties and evaluating how much your money will buy? Talk with several agents to find one you feel is knowledgeable, experienced, available, compatible, and upfront. Professional, reliable agents provide service before, during, and after a sale. If a problem or error arise, your agent should work hard to correct it. After your initial meeting, ask around about the reputations of various agencies and agents, but be aware that while gathering information, it is very likely you will also gather misinformation. One person can easily contradict another; this is human nature and common in a small communities. Being a Good Client/Firing an Agent Agent- and agency-hopping is an ethical no-no, but after viewing several properties reevaluate your agent. If you feel that the agent is not listening to you, tell him or her; they will appreciate you restating your requirements. Often clients are confused about what they want, or unrealistic about what their money can buy. Be clear about what you want. Buying a house is an emotional process, so be prepared to experience some unusual feelings and reactions and understand that an agent has the dual job of steering you through the process of buying property in another country and your own learning curve. If you are unable to work with your agent, graciously fire that agent and find another. You might use a simple, “Thank you for your time and efforts. We feel we wish to expand our search and thought we might consult with another agency. If we feel you can be of further service, we will get back to you.” Remember, the agent you are releasing is a member of the community in which you will live and diplomacy will save some feelings down the line. How to be a good Client If your first visit to the area is an exploratory excursion, tell your agent. He or she will guide you as you gather preliminary information. If you are not in a position to buy at the time, limit the time you spend with the agent as he or she has other clients to serve. If you have funds available to buy property, the agent will intensify the search for a suitable property and guide you through the process. Be clear about how much you can spend and when you plan to resettle. Remember agents often work for months without reimbursement for their out of pocket expenses. The Nitty Gritty At this time, prices for houses on the Northshore run anywhere from $22,000 US to 1.35 million US. The average home with the amenities sought by North American buyers are in the $100,000 US range. Location, as everywhere, is one of the most determining factors for setting the price. The further out from services you go, the lower prices will be. View, construction type, size and amenities determine the rest. Clients can choose from gated communities which offer security (a plus for residents who spend 6 months in Mexico and 6 months elsewhere), large country estates, and village living. Village homes are connected to one another by common exterior, and, occasionally, interior walls and allow residents to live within walking distance of most services and activities. Do not let any agent sell you ejido land. No matter what future promises anyone may make, you will not get a legal title. This is land set aside by the government for the indigenous people of Mexico and cannot be sold to foreigners. Also, there are a few places on the Northshore known for their instability due to soft soil or geothermal faults, and some places have water supply problems. Informed, wise agents will steer you away from these trouble spots. The Buying Process Purchasing a home or lot on the Northshore is primarily a cash transaction, but occasionally short-term owner financing is available. When you make an offer to the seller you must present a check for 10% of the value of the house. A photocopy is made of this “earnest money” and the check itself is placed in the agency safe. Once negotiations are completed under the supervision of the respective buying and selling real estate agents, and both parties have signed a purchase agreement, the check is deposited into the escrow account of the selling agency. The check is later applied to the balance of the purchase price at the notary public’s office. (Note: The actual sale price of a property is not a matter of public record in Mexico, nor is it registered with the government. It is unethical for an agent to tell you the sale price of a property. He or she can tell you what the property was listed for, but not what was paid.) The Closing Closings take place in the office of a Notario Publico, or notary public. These are lawyers of very high standing who, after 5 years of legal practice, apply to the government for notario status and must undergo strict scrutiny to be awarded the title. With it comes many responsibilities and important legal functions. One of these is to preside over and ensure the legality of property transfer. The notary authenticates the seller’s right to sell the property, scrutinizes the history of the property for any irregularities, and makes sure the deed is clear and free of liens through appropriate government offices. Since the buyer pays for the closing costs and notary’s fees, it is his or her privilege to select the notary. The notary can advise the buyer which type of deed meets his needs: direct deed or bank trust deed. The notary will file with the Mexican government the application for the transfer of the deed from seller to buyer. His official signature on all documents finalizes the purchase and makes it a legal transaction under Mexican law. From purchasing to closing the norm is 30 to 60 days, but motivated parties can complete the process within 15 days. Differences in Home Construction There is no slab-frame construction in this part of Mexico. A home here is usually of concrete, glass, stone, brick, iron and rebar construction. Wood is expensive and used little except for design affect. Each wall is load-bearing and has its own foundation. Many houses have exterior walls and decorative metal work to ensure privacy and security. There are "aljibes" (cisterns) for water storage and in some of the newer homes, water purification and pressure systems are built-in. You will also find tanks for storing propane used for cooking and heating water as there is no infrastructure to supply natural gas. You will notice a lack of central heating and air conditioning, as it’s not essential. A fireplace on a cool evening or morning is charming and does the trick. There are no building codes so a good agent will provide you with information about levels of construction quality and what might be buried within the walls. Developers The north shore of Lake Chapala has recently seen a rise in new, speculative construction meant to appeal to buyers from the North. Much of this work is being done by young, Mexican architects from monied Guadalajara families with varying degrees of experience and dependability. There are also projects being developed by American, Canadian and European companies. Remodeling Many buyers purchase a home with the intent of upgrading and remodeling the existing structure. Craftsmen, laborers, architects and artisans abound in the area. If you are in the market for such services, perhaps your agent can help direct you to a general contractor who has a good reputation. Be sure to get a signed, witnessed contract stipulating prices and the quality of work and materials to be used. If language is a problem, get a translator to help you. Several translators are listed in the Lake Chapala Society directory, a members-only book that can be loaned to you by your agent. If, during the remodeling, you feel you have been financially abused, the government has an agency with an office in Chapala called PROFECO which helps consumers receive satisfaction. The pace of work is probably not what you are used to, but in Mexico, patience is required as distribution of materials, cultural standards, and community -- and family-based events interrupt building schedules. Real Estate Agencies/Developers/Internet Websites In Ajijic: Abode Realty: Adj Corporation Ajijic Developments: http://www.ajijicdevs.com Ajijic Real Estate, http://www.ajijic.com ; email: ajijic@infosel.net.mx Ambience Fine Home Builders: http://www.ambiance.com.mx America Mexico Builders Camille’s Realty/Coldwell Banker Chapala Realty: http://www.chapala.com Continental Realty Chula Vista Norte Eager & Asociados: http://www.mexconnect.com/MEX/ea/ea.html Laguna Real Estate: http://www.mexconnect.com/amex/lgna/ Marnher Group RE/Max Ajijic: http://www.desconresorts.com In Chapala: Coldwell Banker/Chapala Realty (Chapala Office), http://www.chapala.com Sierra Vista: In Chula Vista: Century 21 Vistas: http://www.lagunanet.net.mx/c21vistas In Jocotepec: Semprex Realty In Riberas del Pilar: Sunset Realty: http://www.sunsetrealty.com.mx In San Antonio Tlayacapán: Re/Max Fenix About the authors: Tony Harries is a real estate agent who has been working in the Lake Chapala area since June 1997. He is an award-winning school teacher from Texas who retired after 31 years of service. Proficient in Spanish, he has developed a deep appreciation of Mexico following several decades of travel in Mexico before his retirement. He has helped clients from all over the world buy property in the area and this year became a top producing agent for one of the area’s leading agencies. His email is tonyharr@prodigy.net.mx Teresa Kendrick is the author of the recently published book “Mexico’s lake Chapala and Ajijic: The Insiders Guide to the Northshore for International Travelers” Highly detailed and up-to-date, the 208 page book boasts 143 color photographs, a well-organized table of contents and index, and information about nearly everything available on the Northshore of Lake Chapala for travelers and newcomers. The book is available with a full-color map of the Northshore for $26 US plus shipping and handling. The book will be available to purchase locally by calling 76-6-3163 or by ordering from her website: http://www.chapalaguide.com Teresa's email is ajijic@chapalaguide.com . Top of Page Homepage Table of Contents Site Map Write to us, Carl & Lorena http://www.peoplesguide.com ©1972-2001 by Carl Franz & Lorena Havens Copper Canyon • Live & Retire • Table of Contents • Book Reviews • Letters

foreclosure property Kansas Foreclosure

Kansas Foreclosure Listings Information at Business.com Advertiser Center · Help Web News People Jobs Search the Business Internet ® Kansas Foreclosure Listings Databases and listings of residential, government and bank-owned foreclosures in Kansas. Home > Real Estate & Construction > Property Listings > Foreclosure > US States > Kansas Sponsored Links Stop Foreclosure Now Stop The Foreclosure On Your Home Today! We Can Help. Act Now. www.usahud.com Pre Foreclosure Listings Most up-to-date lists available Az, Ca, Fl, Mi, Nm, Nv, Wa www.defaultresearch.com Foreclosure Listings Find Homes - Up to 50% Below Market! Search Now for Free. www.foreclosurefreesearch.com Kansas Foreclosure Search 500,000 National Foreclosure Reos, Auctions & Trustee Sales Free www.bankhomesdirect.com Kansas Foreclosures Save Big on KS Foreclosures 400,000 properties. Free trial. www.RealtyTrac.com Free Foreclosure Search Save up to 50% on your next home purchase. Start your free trial now www.ForeclosureTimes.com Popular Searches Forclosure property listings in Kansas foreclosure homes in Kansas foreclosure listings in Kansas homes foreclosed in Kansas Kansas foreclose home Kansas foreclosure home Kansas foreclosure house Kansas foreclosure list Kansas foreclosure listing « more more popular searches [x] Kansas Foreclosure Listings Kansas foreclosure properties Kansas foreclosure property Kansas Foreclosure property listing Kansas foreclosure real estate Kansas foreclosures Kansas home foreclosure Kansas house foreclosure Kansas real estate foreclosures Featured Listings RealtyStore: Kansas Foreclosure Listings Save 20 - 50% on Foreclosure and HUD real estate. Ideal for investors, bargain hunters and first timers. Free trial membership (Credit Card required). www.realtystore.com RealtyTrac: Foreclosed Property Listings in Kansas Provides foreclosure search engine for Kansas with daily data updates, tax roll information, and photographs. Free 7-day trial. www.realtytrac.com Sponsored Links I'm Paying Cash For Homes Any Price, Condition, Or Location Sell Your Home Quickly & Easily www.webuyhomesaz.com Foreclosure Listings Buy Foreclosures from 50% off Search 600,000 listings for only $1 www.Bargain.com/Foreclosures We Buy Homes Fast We will buy your house directly from you. No Fees AllHousesAZ.com Fresh Bankruptcy Lists Custom lists. Phone #, address, etc Accurate. Daily Updates. High ROI. www.ClickData.com Listings FederalHomes.com: Kansas Offers state-specific foreclosure listings for residential properties. Includes local mortgage and realtor resources. www.foreclosurenet.org ForeclosureFreeSearch.com: Kansas Free online resource offers foreclosure property listings by state. Includes links to mortgage and real estate information resources. www.foreclosurefreesearch.com ForeclosureNet.net: Kansas Foreclosure Listings Offers bank foreclosure and government foreclosured property listings in Kansas and across the US. Homes, rental properties, and commercial. Free Trial. Free Trial | Search Listings | Foreclosure Info. | Testimonials www.foreclosurenet.net RealEstateForeclosures.net: Kansas Browse foreclosure property listings in Kansas. Click on the map to find listings in that area. www.realestateforeclosures.net RealtyStore: Kansas Foreclosure Listings Save 20 - 50% on Foreclosure and HUD real estate. Ideal for investors, bargain hunters and first timers. Free trial membership (Credit Card required). www.realtystore.com RealtyTrac: Foreclosed Property Listings in Kansas Provides foreclosure search engine for Kansas with daily data updates, tax roll information, and photographs. Free 7-day trial. www.realtytrac.com Registry Line: Kansas Offers a daily feed of foreclosure property listings in Kansas. Become a member to access complete listing details. www.registryline.com Search the Business Internet ® Advertiser Center | Account Login | About Us | Careers at Business.com | Featured Listings Privacy | Terms Of Use | 2000-2005 Business.com, Inc. All Rights Reserved

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Real Estate Prices Still

Agricultural Economist Newsletter: Winter 2001--Farm Real Estate Prices Still Rising in Minnesota Farm Real Estate Prices Still Rising in Minnesota Steven J. Taff Average Minnesota farm real estate sales prices just keep on climbing (figure 1). This despite low output prices, rising input costs, and continued uncertainty about the future of federal subsidies. Sales price increases were seen in all parts of the state except in the northwest. In this annual sales price summary, I can provide only an overview, some cursory analysis, and--as always--a few opinions. I'll not bore you with text that simply repeats what's already shown in the charts. Instead I'll spend some time discussing how land transaction data are recorded, adjusted, and employed. I think it's useful to go through some administrative and procedural details to further our understanding of what these data are and what they are not. If this prospect makes you say, "Just show me the data, Steve," then you can stop right after the sales summary section. Or, if your impatience knows no bounds, go straight to the Minnesota Land Economics (MLE) Web site at http://apec.umn.edu/faculty/sjtaff/landdata/index.html and start working the numbers yourself. Farm Land Sales in 2000 Assessors are required to report initial assessments in late fall, based on sales data to date. That's why the data are reported on a "record year" basis: these are the sales that were, presumably, available for assessor scrutiny at the time the initial estimated market-values are calculated. Final values are set by summer, to be used in the succeeding tax year. So, for example, sales made in late 1999 are used by assessors to set initial values for January 2001. These estimates are adjusted in spring 2001, finalized in summer 2001, and then used for tax purposes in 2002. The adjusted record year 2000 sales data were therefore not available until April of this year. Figure 2 shows the distribution of all farmland sales in 2000. The bulk of the sales lie between $500 and $2,000 per acre. I excluded a small number of sales that exceeded $5,000 per acre as well as those involving parcels of land less than 20 acres in size. Both were excluded as not being plausibly "agricultural"--despite their designation on the Certificate of Real Estate Value (CRV) as "agricultural" land. (Although excluded from figure 2, these data are included in the MLE Web site data.) Even though MAE readers and MLE Web site users can view the full distribution of sales prices, most still ask for a single number that somehow captures the story behind the figures. Obviously, for a set of sales that span such a wide range in prices, any single number fails completely to accomplish this end. Movements in averages, while arithmetically correct, usually fail to tell the entire story. The particular average I use in this article is a location- and size-weighted mean (table 1). In last year's farm real estate report ( agecon.lib.umn.edu/mn/mae699.pdf ), I discussed the usefulness of such weighting as well as the desirability of examining sales data at the smallest geographic scale possible. Table 1. Minnesota farm real estate sales summary Record year Number of sales Acres sold Average price* 1996 2,504 263,728 936 1997 2,641 296,803 1,039 1998 2,724 303,968 1,113 1999 2,212 235,359 1,196 2000 2,258 250,979 1,222 * Location- and size-weighted per-acre mean Figure 1 compares the movements of actual sales price averages with those two other estimates of land value--the United States Department of Agriculture (USDA) annual state estimates (based on a farmer opinion survey) and the average assessor estimates (the location- and size-weighted mean estimated market value). The University of Minnesota sales prices averages are location- and size-weighted means. The fact that all three (somewhat) independent estimates of farmland real estate values shown in figure 1 move in lockstep adds credence, I believe, to the conclusion that, on average, farmland values really are increasing in Minnesota. Geographic variations in real estate values for the past 11 years are shown in the box-and-whisker plots of figure 3. (District boundaries are shown in figure 4.) The range of sales prices for each district for each year is shown by the endpoints of the vertical lines. The ends of each box show the prices at which 25 percent of the sales were higher (or lower). The median is indicated by the horizontal bar within each box. So, for example, the median Central district farmland sale was about $1,200 per acre, with 25 percent of the sales lower than $750 and 75 percent lower than $1,850 per acre. In previous years' reports, I've noted the wide variation in average price movements among districts. Such differences were accentuated in 2000 by the continued climb of values in the South East district combined with the continued stagnation in the North West district (figure 5) . Farm Sale Data When a Minnesota property is sold, the transaction details must be recorded at the county courthouse on a form called a CRV. On it, the seller attests that such-and-such a property was sold to so-and-so on a certain date for a specific price. Other information about the property (its size, soil characteristics, prior year's estimated market value) is often entered on the CRV as well. Frequently, the per-acre prices that underlie this article and are also shown in the MLE Web site are not the prices entered on the CRV. Long before a land sales figure enters the official data base, it has been passed through an array of filters and adjustments designed to make comparison among transactions more meaningful and more reliable. Recording the Transactions There are many possible slips between an ownership change and data analysis. Of course, there is always the chance that simple recording errors are made. For example, numbers may be miscopied from bills of sale onto the CRV, or into a computer file, or into a spreadsheet. There is also a chance of misrepresentation. The person who fills in the CRV might have a reason to understate or overstate the actual sales price--perhaps to avoid a tax. This, of course, is illegal, but, as any courthouse veteran can tell you, it occasionally happens. Not every sale receives further processing. Local or state officials remove from subsequent analysis any sale not deemed "arms-length," because it was sold, for example, to a member of the seller's immediate family. Or, a sale might be pulled because the new buyer intends to convert the land to a non-agricultural use. Adjusting the Prices After this filtering, sales prices are frequently adjusted to make comparison among sales more appropriate. First, to expunge the effects of inflation, sales prices are deflated by an officially reported rate to January 2 of the year in which they were recorded. This "adjustment for time" is fairly minor in years (like the past decade) where inflation has been low. The second adjustment is "for terms." Not all farm real estate sales are for the full property. Some are made through a contract for deed, an arrangement that allows the buyer to pay a certain amount now and other amounts at stated intervals. Until the final payment is made, the property remains in the possession of the seller--even though it has been "sold." Because the full payment schedule is entered on the CRV, the Department of Revenue can calculate a present value of the initial and subsequent payments at an official discount rate. This becomes the official sales price of the property, regardless of what the buyer and seller had in mind when they sealed the deal. Adjustments don't end with a time- and terms-adjusted sales price, honestly reported and accurately recorded. In most cases, users of the data are interested in per-acre prices, not per-parcel prices. That means some chosen total price must be divided by some total acreage. But which price? Which acres? Should we use the total price or should we first subtract out the value of buildings, personal property, ancillary property, or machinery to get closer to the "true" land price? In this article (and on the MLE Web site), I choose to follow conventions established years ago in Minnesota. I report the time- and terms-adjusted total sales price, minus the value of personal property, divided by the entire acreage of the parcel. That's why, when I'm being careful, I speak of the average price of farm real estate, not of farm land . Employing the Data The sales reported here are only those recorded between October 1, 1999, and September 30, 2000. These "record year 2000" sales are so bundled because of the way real estate transactions are used to help local assessors value land for property tax purposes. Strange as it may seem, the Department of Revenue does not collect sales data merely to satisfy the data cravings of University economists like me. No, statewide sales data are collected principally to create statistics that are used to "equalize" property tax valuations across county boundaries. Each year, county assessors are required to assign an estimated market value (EMV) to each of the thousands of real estate parcels in the county. The estimate is supposed to be based on an examination of similar properties that were actually sold recently. (The combined valuations for each township, city, or county are the source of the Land Values--in contrast to the Farmland Sales--data on the MLE Web site.) Because every county has its own assessor who uses largely independent valuation procedures, there are inevitably discontinuities across county lines--even for adjacent properties. Farmer Brown wonders why Farmer Olson's land, just across the fence line in the next county, carries an assessed value that is lower by $200 per acre. The state has created an equalization procedure that is supposed to smooth over such discontinuities. Assuming that nearby properties really would sell for similar prices, any observed difference in assessed values for otherwise similar properties is presumed to be evidence that one or both of the assessors is either undervaluing (that is, assigning an EMV that is too low) or overvaluing properties. To test this, the state calculates a sales ratio (the EMV divided by sales price) for every property sold in a particular area. If an assessor systematically undervalues properties (shown by sales ratios that are consistently lower than some threshold), the state might demand the EMVs in that jurisdiction be uniformly raised, to better accord with what is thought to be "true" market conditions. How Accurate Are the EMVs? We can see for ourselves how close the final assessor estimates are by comparing actual sales prices against the previous year's estimated market values for the same property (figure 2). Each point in the figure represents one sale. For example, the rightmost point is for a property that was estimated to have a value of $4,900 per acre, but actually sold for only $2,900 per acre. While some of the estimates are obviously way off (like this example), the bulk are pretty close. In most cases, the EMV was lower than the sale price, but in a neatly predictable manner. A simple one-variable regression model, shown as the straight line in the figure, accounts for nearly 75 percent of the observed variation in farm real estate sales prices. Parting Thoughts What accounts for the ever-onward-and-upward movement of average farm real estate prices in Minnesota? We need only to round up the usual suspects, most of which I have discussed at length in previous issues of MAE . These include 1) perennial farmer optimism about future crop and livestock prices, 2) expected extensions of federal farm subsidy programs, 3) continued favorable local property tax treatment for farmland, 4) the desire of some farmers to increase the size of their current operation by buying adjacent farmland, 5) the desire of some non-farm buyers to use land as a hedge against inflation, and 6) inflation itself. An additional suspect that we need to add is the increasing prominence of location even in rural land markets. We simply can't explain current price levels on the basis of income potential (including subsidies) and speculation potential alone. Clearly, where the land sits with respect to job centers and what it looks like is influencing the price buyers are willing to pay for a particular parcel of land. As always, I caution potential land buyers and sellers about reading too much into the average land prices reported here and elsewhere. If you've got land to sell or if you have a hankering to buy land--look before you leap. The financial stakes are too high for casual empiricism. Hire an appraiser. Talk with your spouse. Check your finances. Think about the children. Be careful out there! Steven J. Taff is an associate professor and extension economist with the Department of Applied Economics at the University of Minnesota. Return to Minnesota Ag Economist Newsletter Index Page University of Minnesota Extension Service HomePage