2021 Review – A Message from Scott Steffes
2021 is almost over. WHEW!
It goes without saying 2021 will be marked as one of the greatest “change” years. As we near the end, we have record highs in land and machinery sale prices in all facets. Farm equipment, construction equipment, transportation, and real estate are all marking new highs everywhere we look. I think it’s important to note although we’re certainly not used to it, these price changes and markets like we’re experiencing have certainly occurred before. Those with a little more age will attest to that, plus some a little younger who have studied history or listened to stories from their elders. What’s driving this? I always like to keep it simple and just refer to the laws of supply and demand. Those that wish to debate the multitude of other issues, feel free.
One thing for certain, if you’re looking for a leading indicator or some inkling of where we’re headed next, I have a little secret. Follow the auctions. Yes, it can be just that simple. You see, the auction method of marketing is “true price discovery.” We’re always the first up, which we’ve been experiencing these last several months, and I can assure you auctions are where you’ll first see what happens next, which also always occurs.
Fortunately for sellers, we don’t see much downside pressure in the near term but perhaps a bit of a slowing we almost always see after a calendar year change. I don’t think it will last long, though, at least in the short term, until another “change event” enters the market. Don’t ask me when that will occur or what it will be, but it will come, and you’ll first see the results at an auction. Make no mistake, the supply is too short, and the demand is too strong right now as we plainly see each day we sell another piece of equipment or land.
Here at the Steffes Group, we’re always trying to look ahead and prepare as much as possible for what’s next. Like you, I wish we had a crystal ball, but alas, we don’t. However, we do have our founding principles and how we conduct ourselves by adhering to our brand promises and core values that we publish for all to see. They guide us and help us listen to what our clients and customers want and need. The best part about it is that we also have our greatest tool to help deliver on our promises, attain true market value for all that we sell, and report on where the market is headed. It’s very simple as well and the ultimate expression of the true American free enterprise system. Auctions! I hope to see you at one soon, or in this world we live in today, your email address registered for one of our auctions!