House prices rising
Doug Ashbury
Northern News Services
Yellowknife (Feb 14/01) - In about a year, the Yellowknife housing market has swung from a buyer's market to a seller's market.
"Prices are going up," Willy Chidowe, president of the Yellowknife Real Estate Board, said Monday.
A year ago, "it was a great time to buy. Now, prices are up and I believe the trend will continue because of demand," he said.
"In any market, when there's higher demand, prices go up (and) we have fewer houses on the market," he adds.
Today, houses are commanding prices that are $5,000 to $10,000 higher than they would have sold for a year ago.
Chidowe adds many buyers are seeking houses in the $200,000 to $240,000 range.
But there "seems to be a shortage" in this range, he said.
Driving the demand for this price range are home owners looking to upgrade and people coming to Yellowknife with a preference for stick-built homes, as opposed to modular homes.
"When you look at the people wanting to upgrade, and people moving into Yellowknife, and the vacancy rate, that tells you something major is happening in our city."
Last year, the City of Yellowknife issued residential permits for 20 stick-frame homes, two manufactured homes and one multi-family home.
The total value of the 23 units is $3.9 million. This compares with just four stick-frame houses and seven manufactured homes permitted in 1999 worth $750,000.
The value of all residential permits, which includes housing starts, alterations and additions, was $5.4 million in 2000, compared to $3.2 million in 1999.
Several of the new stick-built homes are constructed by Quantum Developments, the company, owned by Frank Ramsay.
Ramsay said when it comes to the city's real estate market, there may be a "big problem looming."
Growth is expected but there is no solution, he adds.
"There's not much selection and that's a shame. We know we're in a growth phase and we're not providing for it."
And Niven Lake is not the answer, he said.
Ramsay said the city "wants premium prices for inferior lots" when it comes to Niven Lake. "They (the city) should reduce the cost and get rid of them."
Asking premium prices for lots that need pilings to reach bedrock is not economic, he said. Asked where the land for new lots should come from, Ramsay said there are some lots left in Frame Lake and there's talk about Tin Can Hill. Ramsay also said he would like to see the Yellowknives Dene look at the possibility of housing along the Dettah road.
