by Glenn Taylor
Northern News Services

INUVIK (Sep 19/97) - When property manager Mary Beckett walked into a local store earlier this year looking for a "for sale" sign for one of her clients, she discovered that all but one of the signs had already been sold.

"For sale" signs are a hot item in stores these days, as dozens of homeowners put their property on the block. But thanks to several factors, few buyers are coming forward.

Beckett counted the number of houses for sale in Inuvik earlier this year and was astounded by the answer: 42.

"People have a lot more choice in town now," according to Vicki Billingsley of Delta Management Associates Ltd.

"I remember five or six years ago, when a lady phoned me in tears, saying that she had got a job here, but couldn't find a place in town. She was afraid she would have to go back south. The pendulum swings."

Long-time residents still recall the crazy days of a few years ago, when an ad appeared in the Drum offering a cash reward to anybody who could find them a house. Those days are gone, at least for now. "This is not a good market for selling houses," added Beckett. "There is a lot of downward pressure on prices now ... if you expect to make a profit when selling, you're dreaming."

A number of factors have created the housing glut, to the delight of buyers and renters. First, the economic downturn brought on first by the decline of oil and gas activity, and then in the last two years by massive government cutbacks.

"People working in government used to be able to sell their house to whoever was replacing them in their job when they left," said Beckett.

"Now, a lot of those jobs have been eliminated, and there's not as much turnover of people as in the past." The 1996 census counted 3,206 residents in Inuvik, down substantially from 3,500 estimated by the town in 1995.

Other factors play a role, including the GNWT's decision to get out of the housing business a few years ago.

Government had been criticized in the past for holding a number of empty houses, creating an artificial shortage of units available. When government sold these and a number of row houses, local entrepreneurs quickly snapped them up and offered them out as rental units.

This sudden infusion of rental units was followed shortly after by massive government cutbacks. The population continued to shrink, and renters began offering lower and lower rates to attract dwellers.

Beckett said low rent prices have turned prospective home buyers away from buying and towards renting. Row-house rents a few years ago were about $1,200, but now that price has dropped as low as $900 per month.

"The rental rates are the lowest I've ever seen," said Beckett. "People used to buy houses to build up equity and avoid paying $1,400 a month on rent. But with rents now so low, the incentive to buy is much less. If you can rent for $900 or $1,000, who cares? It's not worth the effort buying a house."

With government employees losing housing allowances as part of their pay packages, many people are now taking on roommates or living in shared accommodations, further reducing the number of prospective renters, says Billingsley.

"It's tricky for renters right now. There's a wide variety of choices, and a number of landlords anxious to get their places full."

There is an up side to this picture, however, especially if you're a prospective home-buyer or renter. "It's great if you're renting, great if you're buying. But if you're an owner, it can be a little scary."

The cost of living for renters is at an all-time low, and rental units in Inuvik are substantially less expensive than other regional centres like Iqaluit or Yellowknife, said Beckett.

"The economy will turn around again. With the gas pipelines and with other projects, things will come back," said Beckett. "Now might be a great time to buy."