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Development interests subdued by real estate market

The Minot area real estate environment is neither a buyer’s market nor a seller’s market. Yes, real estate prices have come down but not to the point where they were ahead of the economic boom and the 2011 flood. There are opportunities for the smart buyer and the smart seller, depending on timing and patience.

Such is the state of the local real estate market, as explored in Sunday’s Minot Daily News. Good news or bad news is entirely in the eye of the beholder.

One type of real estate interest appears to face the toughest challenge, and how this shakes out will undoubtedly have an impact on the city overall.

The parties in question are development interests that bought into the Minot market when property costs were high. Developers who paid a premium for property on which to develop, and who assumed they would profit from building and selling costly residential units are in a tough spot. Land values have slipped, the housing market is loose and with more affordable units readily available, demand for costly, high-end residences has certainly diminished. Still, having bought when prices were high, developers are in position where they need to hold on to properties in the hope that another boom will encourage them to develop in a welcoming marketplace. If that happens.

Just how many entities are in this situation is unclear. It is a precarious position in which to be. Whether envisioned development plans come to be a reality or not will inevitably help shape the face of Minot for years to come. For better or worse remains to be seen.

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