Agriculture Versus Residential
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Agriculture Versus Residential
As specialists in the agriculture sector of the real estate
market, we are often asked if the market for farms and acreages follows the
residential real estate market in its ups and downs. The simple answer is, yes,
it does follow the changes of the residential real estate market.
It has been our experience at BC Farm and Ranch that for the
most part if the residential real estate market is active and trending upwards,
that the agricultural real estate market will follow. The properties most
effected by the residential market are the hobby farms and estate acreages.
These types of properties have a larger focus on the residential aspects of the
land in comparison to the income producing aspects that are considered
important in commercial farms.
Commercial farms such as dairies, poultry farms, produce
farms, greenhouses, etc. are also impacted by the residential real estate
market but to a lesser degree and often don’t experience the extremes that
residential properties can. The Commercial farms and the larger amounts of
financing they require are also largely affected by trending interest rates and
outside forces like the exchange rate of the Canadian Dollar and International
Trade Agreements.
Of course, there are some big differences between the agricultural
and residential real estate market. Agricultural properties are higher in
value, usually have much more land involved, and in many cases have equipment,
buildings and inventory to be taken into consideration. That’s why it is so
important to work with a brokerage whose sole focus is properties in the
farming sector. We understand the differences, the timing, and the industry
specific needs of agriculture real estate.
Our clients range from people just entering into the farming
community to big corporations looking for their next investment. So if you have
been curious about the agricultural real estate market and either how to get
involved or what your property might be worth today, contact us. We can help
you navigate through and meet your individual needs.
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