Glen Vienneau
Northern News Services

Yellowknife (Aug 09/00) - Good times are here for Yellowknife homeowners wanting to sell.

"For the most part, it's a sellers market. A year ago it was a buyers market," said Willie Chidowe, Real Estate Board president.

He added that while it may be unusual for this time of year, prices are going up mainly because of a shortage of homes on the market.

He offered trailers as an example of how the market is going. "Anything from 1980 on up and it's priced right, it's going to sell. It's not going to last long."

Chidowe said some homes on Hordal Road have lasted on the market less than a day. "Now we're finding people buying a house even before it's listed."

Some homeowners have received three or four offers for their home and buyers have paid over the listing price.

Downpayment program

The shortage of homes on the market is also due the government's home ownership grant program which ended in March of last year.

The NWT Housing Corporation's Minimum Downpayment Assistance Pilot Program (MDAPP) provided qualified buyers with a $10,000 grant in order to stimulate the housing market in the NWT.

After the program ended, potential buyers simply held back from buying a home and watched the market.

"We needed confidence in the Yellowknife market, now we have it," said a happy Chidowe, who credits the diamond industry and its supporting companies for bringing home buyers to Yellowknife.

There are also people who are simply relocating, said Darren Pelley, manager of Urbco Inc., which operates more than 400 rental units in Yellowknife.

He is receiving many calls from school teachers. "It's really happening and tightening a lot. It's been going good," said Pelley.

"I remember one time driving down the street and seeing two, three, four for sale signs on the street and be there for months at the time,"

"Now, you drive down, if you see a couple in the street, one out of two has probably a sold mark across it which is good also."

Pelley said demand for apartments has improved over the summer and estimates a three per cent vacancy rate, including units being renovated.

"It's not a lot different than it's been in the last few months. Yellowknife is pretty good now it seems," said Dave McCann, general manager for MacKenzie Management, which manages 14 buildings with about 411 rental units.

McCann estimated the vacancy rate at about four to five per cent for rental units.

He pointed out that the current market trend can change, depending on the mood of the mines such as Diavik.