The view of the Richardson Mountains from Inuvik has gotten a little more affordable over the past few years thanks to declining housing market values. - photo courtesy Martin Male/Wikimedia Commons |
Inuvik housing prices take a fall
Between past and future projects, a buyer's market
Walter Strong
Northern News Services
Published Monday, July 21, 2014
INUVIK
With the indefinitely stalled Mackenzie Valley gas project behind it and proposed petroleum product exploration in the Beaufort Sea well-off in the future, the Beaufort Delta is currently in-between major projects.
According to Jim Weller, a Coldwell Banker Inuvik real estate specialist, this has caused a drop in property values.
"The Inuvik real estate market has been in decline since 2011 when Imperial Oil announced that it would not be proceeding with the construction of the much anticipated Mackenzie Valley Gas Pipeline in the foreseeable future," said Weller.
"Prices have dropped about 10 to 15 per cent and the number of sales has dropped off substantially."
Describing Inuvik as a buyer's market, Weller said there are about 60 homes listed with approximately a dozen sales per year.
Current listings on Coldwell Banker's real estate website show a range of listings from $45,000 for an 1,800-square-foot shop with a two bedroom apartment to $550,000 for a seven-unit townhouse rental property. A three-bedroom, one-bath, townhouse condo lists for $49,000.
Another factor playing into housing market value in Inuvik is the incredible spike in heating-fuel costs the community has experienced since it was forced to switch over to trucking-in propane-based synthetic natural gas at double the cost of Inuvik's previous natural gas supply.
The switchover to propane was forced on the town when the Ikhil gas field was scheduled only to be used in emergency after a collapse of well walls compromised the field in 2010, allowing water to enter into the supply.
But the depressed real estate market has a bright side.
"Combined with record-low mortgage rates, home ownership is the most affordable it has been in years," said Weller. "Regardless of propane (heating) costs."
