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Thorunn Howatt
Northern News Services
Yellowknife (July 11/01) - Miners and others drawn to Yellowknife's diamond boom are faced with low vacancy and high housing prices during the first quarter of 2001.
 It used to be a buyer's market. Now it's a seller's market, city realters say. |
"Sellers are getting close to list price. Prices are trending upward," said Coldwell Banker's co-owner, Ken Pearman.
He noted an "adequate" supply of properties priced under $100,000. House-hunters looking to pay about $225,000 might be disappointed by the lack of listings in that price range.
Out-of-town buyers are flocking to Yellowknife as part of diamond mining activity.
In the first quarter of 2001, ending March 31, 54 residential units were sold, tallying up $9 million in sales. This is compared with last year's 45 units, which totalled about $6 million. The average cost per unit was $161,451 in this year's first quarter compared with last year's $131,302 in the same period.
Despite the lack of housing in the city there is a lack of new construction.
"Builders haven't jumped at the opportunity," said Century 21 owner Willy Chidowe. "Builders are saying there's no money in it."
The price of gold and consequent lack of gold mining employment caused the housing market to collapse but diamonds have caused a reawakening in the mining industry.
But this time around, builders and speculators are being more cautious.
Builders are also finding the cost of putting a house up is higher because of trade labour costs.
"BHP and Diavik are paying more than workers can get as tradespeople," said Chidowe.
"I think for the time being realters are going to find it difficult to find vacancy.
"It used to be a buyer's market. Now it's a seller's market," he said.
The market hasn't had a lower vacancy rate for over 10 years, said Shane Clark, president of the Yellowknife Real Estate Board.
He estimated 25 houses for sale in Yellowknife and only 75 residential properties including mobiles, condos and duplexes. He said there are about 250 residential lots in the Niven area, the newest subdivision.
Clark, whose real estate firm is HomeLife, Sunrise Realty, said, "We're receiving three phone calls a day regarding rental properties."
Clark said he took a call from a woman who landed a job in the city. After exhausting all rental possibilities and coming up with nothing, she decided not to accept the offer in Yellowknife without confirming an apartment.
"People are calling and asking to be put on lists," said Hope Sturm, who manages Ciara Manor for Inter-Pro Property Corp.
"Basically I've had up a 'no vacancy' sign. I haven't placed an add in months."
She explained she has heard horror stories about the high price of rental properties. Prices in Ciara Manor have not risen but they have discontinued offering rental incentives.
