Lot prices are dropping in a Southern Sioux Falls neighborhood to spur development in the area.
On Friday, real estate developer Van Buskirk Companies closed on the purchase of 150 lots in Prairie Hills in Southern Sioux Falls. Van Buskirk is buying the lots from the bank once owned by the Jamison Company.
These high-end executive homes can also come at a very high price. But it is getting more affordable to build in Prairie Hills because lot prices are going down.
"Some prices were really dramatic because they were out of the market. For instance, we had a $230,000 lot that's about $75,000 now," Real Estate Developer Steve Van Buskirk said.
Van Buskirk's company is buying up 150 lots and has already sold 30 of them under the new price structure, which averages 30 percent less than the original price of these lots.
"We want to get some activity going and as we get those first houses started then we'll start moving prices back up. It's a drive to get activity going and neighborhood re-energized and it's working," Van Buskirk said.
Homeowner Megan Jarding and her husband are among those taking advantage of the lower lot prices and are watching their dream home go up.
"The lot was more affordable now, so it made able to build the house. I don't know about more house, but just the house we wanted in the beginning," Jarding said.
Van Buskirk is re-pricing the lots to run between $42,000 and $250,000. Home values here start at $350,000 and run all the way up to $1.5 million.
And Prairie Hills is no longer on the outskirts of town, like it was ten years ago when it started.
"We picked this neighborhood because we really enjoy the views and we like the landscape of this area. We think the location is great and hop on the Interstate and get to East or West side of town in ten minutes. We like the fact it's close to the mall and grocery store; all the places I go on a weekly basis," Jarding said.
"There's a lot of momentum in this area. It's always been a nice area, but a lot of the services are filling in and this neighborhood is in the heart of it. It's an exciting area. We get those prices set correctly now and protect character of the houses and start getting momentum people are going to be energized and want to live out here," Van Buskirk said.
While the lot prices have changed, the covenants on the homes have remained the same to keep continuity in the neighborhood.
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