CMHC raises limit to $250,000
Doug Ashbury
Northern News Services
Yellowknife (Apr 04/01) - The housing industry continues to heat up in Yellowknife.
Last week Canada Mortgage and Housing Corporation announced it was raising it price ceiling to $250,000 from $175,000. The move means people can buy or build a home in Yellowknife with as little as five per cent down.
"That area (the $200,000 to $240,000 range) seems to be where most of the focus is in terms of buyer demand," said Rod Stirling, an owner of the Yellowknife Coldwell Banker real estate firm.
"It opens up some new doors. It could lead to new (residential) construction and help the re-sale market."
The Yellowknife Coldwell Banker recently won two of the company's national awards. The Yellowknife office was up against all Coldwell Banker offices with one to 10 sales agents. The Yellowknife Coldwell Banker won first for gross commission earned and first for the number of properties sold. It's the third year in a row the office has won first in the income category and the second year in a row for most units sold.
"The market is strong. We're expecting another good year," Stirling said.
The recent territorial government program which gave home buyers a $10,000 boost, and diamond mining activity, have been factors in the market's turnaround, Stirling said. Oil and gas development may also be a spark for the market down the road, he adds.
Stirling says the CMHC announcement, combined with low mortgage rates, point to a strong year.
Robert Goatcher of the CMHC agrees.
"Falling mortgage rates, a growing economy, continued positive in-migration and rising consumer and business confidence should combine to produce a stronger year for housing demand in Yellowknife during 2001," Goatcher, CMHC senior market analyst for the Northern Alberta and the NWT, said.
"With the tight rental market, and rising rents, some builders will be looking into new rental unit construction." Sandra Turner, CMHC corporate representative in Yellowknife, said moving the ceiling to $250,000 "gives potential home buyers more choice."
Through CMHC, home buyers can secure up to 95 per cent financing from commercial lenders. For a conventional mortgage -- one which does not require CMHC insurance -- home buyers need 25 per cent of the downpayment.
