Assuming there are enough buyers for the available farms the easing trend is likely to be halted, Real Estate Institute rural spokesman Brian Peacocke said.
For the three months to the end of September sales numbers are down 35% on two years ago.
There were just three dairy farm sales nationally in September and 14 for the three months.
Solid sales activity for finishing properties in Waikato, Manawatu-Wanganui and Canterbury regions was a notable feature of the three-month period, with some high prices for smaller Waikato blocks.
Grazing farms had sufficient activity in Northland, Auckland and Wellington as well as in Canterbury and Otago and there were steady sales in Southland.
The arable market was very quiet, except for Southland, Peacocke said.
Good sales continued in the horticulture sector, including smaller orchards in Bay of Plenty, some activity in Gisborne and Hawke’s Bay and a burst of sales in Marlborough.
Overall, median farm sale prices slipped 7% year-on-year but the institute’s All Farm Index rose 4% for the three months to September and 9.2% for the year. Unlike the median figure, the index adjusts for differences in farm size, type and location and is regarded as the most accurate indicator.
Median price per hectare in the September period was $25,447, down from $27,363 for September last year but higher than for the August 2018 figure.
There were 21 fewer farm sales (250) in the latest September period compared to September last year (271) and a bigger dip from the latest August period of 323 sales.
For the year to September 30 the total number of farm sales was 1460, a 12.4% fall from a year earlier.
The median price for dairy farms fell 18.3% year-on-year to $30,876ha from $37,812ha. The latest median price was similar to the August 2018 figure.
The Dairy Farm Price Index slipped 1.3% from August to September and for the year was down 15%. As with the All Farm Index, it adjusts for price, type and location.
Finishing farm prices improved with the September median being $32,412ha, up from $28,011 in August and from $30,828ha for the September 2017 period, a 5.1% gain.
Grazing farm prices also improved from August to September, from a median $10,168ha to $11,936ha but were lower than the $12,031ha in September last year.
For horticulture block sales the September median was $193,517ha, down from $255,351 in August, but slightly higher than the $189,044 figure in September last year.
Regionally, Wellington, Southland and Manawatu-Wanganui had more sales than during the same period last year with Northland and Auckland having fewer sales. Manawatu-Wanganui numbers did drop from the high during the August period.
Peacocke said spring farming conditions have been much better than last year and the best in many years for good pasture growth.
However, cautious operators will now be watching rainfall figures, with the possibility of a dry period ahead.
