"People are perhaps losing their confidence in the marketplace and that air of uncertainty is created by government," says Rod Stirling.

"Nunavut is a dark cloud over Yellowknife. I think government should tell people who are affected and what to expect. Government should be more responsible about saying how they're phasing in Nunavut."

Adding to the air of uncertainty is BHP's plans, he says.

"They should say, this is our plan, and how we're going about things," says Rod Stirling. Compounding the problem, he adds, are rumors about what the diamond mining company might be doing.

"The combination of the two could clear the air and give much-needed confidence in the marketplace," says Stirling.

BHP Human Resources manager David Boyd says he's heard a lot of rumors, too. As for BHP's plans, he says that's been clearly spelled out in both the Environmental Impact Statement regarding hiring of Northerners and aboriginals, and in the public hearings which addressed accommodation needs.

BHP is currently leasing about seven or eight houses for the next two to five years, he says.

Stirling's outlook does have an up side, however. He says housing sales are starting to pick up. Part of the reason may be the end of school and excellent mortgage rates. The one-year closed mortgage rate is 5.2 per cent, according to RBC Dominion Securities.

As of the end of May, there were 222 homes listed through the Real Estate Board. That doesn't include private offerings.

Julia Mott, executive director of the Real Estate Board, says that there were 40 new homes put up for sale in May. This past April, 56 new listings went on the market. The figures don't include homes being sold privately.

The average price of a single-family home in Yellowknife is $191,571 in 1997, says Mott. In May 1996, it was $162,385 and in May 1995, it was $182,722.

Willy Chidowe, owner of Century 21 in Yellowknife, says sales in the past three weeks have been greater than the past two months.

"I don't see a dark cloud over Yellowknife. I don't see the gloom that everybody's portraying. I think with interest rates going down and if they stay low, and the (BHP) mine, with employment contracts signed, you'll see more movement. Security in the marketplace rests with job security."

"Because I'm in sales, I'm not putting my head in the sand either. Sales have been positive -- we're not out of the water yet, but it's a good sign. I've been in Yellowknife 10 years, but I don't see people panicking. I think what's happening down south is just catching up with us."

Stirling acknowledges Yellowknife is experiencing normal market conditions found in the South and properties are taking a little longer to sell.

Stirling says many of the people putting up their homes for listing are testing the waters.

"Many are just a fishing expedition," he says.

He predicts a "bumpy road" for 1997 and "it should get a little busier in 1998."