David Ryan
Northern News Services
Wednesday, February 7, 2007

YELLOWKNIFE - Average sale price of a home was up 21.4 per cent in 2006 compared to 2005.

According to the Canadian Real Estate Association's Multiple Listing Service, the number of homes sold was also up, 158 compared to 85 in 2005.

But while city real estate companies say this year has also started strong, a lack of homes for sale is a concern.

The average price of a residential dwelling in 2006 was $291,065 compared to $230,812 in 2005, said Gregory Klump, chief economist with the Canadian Real Estate Association.

"There has been a dramatic increase in sales (in Yellowknife)," he said.

A strong economy in the city and job security could be two reasons why the amount of sales increased, and why home buyers are willing to pay more for homes, he said.

Last year was a good year in terms of home sales in Yellowknife, but there are fewer homes on the market than in past years, said Ken Pearman, president of the Yellowknife Real Estate Board and co-owner of Coldwell Banker.

He also cautioned that the average price could be skewed higher if four or five homes are sold for more than $500,000 during the year, the overall numbers can go up.

At Homelife Sunrise Real Estate, owner and agent James Clarke said the average price of homes in the report was accurate.

With De Beers Canada's Snap Lake project coming on line and interest in the potential Mackenzie Gas Project, the housing market has been busy, said Clarke.

"There is a horrendous demand but there is very little supply of homes," he said.

Sales have continued to be brisk since the beginning of the new year, he said.

"This year should continue to get better from all sides," he said.

Across Canada, the average price for a home was $276,974. There was an 11.1 per cent jump in the price of homes sold from 2005 to 2006.