Hold on, property value slide isn’t over
The report last week that property values in Minot have continued to slide should come as a surprise to no one.
The 2011 flood, combined with the demand created by the oil boom, prompted an explosion in values that is coming down far, far slower than it shot up to begin with.
Given the projected course of oil and commodity prices, it seems unlikely that another boom is on the horizon. The best-case scenario is a slow, steady rise for oil. That wouldn’t impact demand in the market the same way.
Meanwhile, stakeholders in the real estate market will hopefully recognize the new reality in Minot real estate and plan accordingly. Longtime industry professionals assert that there remain good opportunities for both buyers and sellers in the single-family home market.
Of more concern to the city at large should be those projects that were proposed, were in the pipeline or on the drawing board when the decline became obvious. Without the market demand to propel those today, they aren’t going to be on the market when the demand does eventually manifest. That could result in the skyrocketing real estate costs (particularly in terms of rentals) that many residents have decried in recent years.
Like with commodity prices, the real estate market has many influences. Hang on, a bumpy ride might well still rest ahead.