Yellowknife housing supply-demand imbalance isn't likely to change soon. - Norm Poole/NNSL photo

Two years ago, Yellowknife realtors had more than 300 homes listed for sale, said Homelife's James Clarke. Right now, there are maybe 20.

"There is virtually nothing to sell," said Clarke.

That includes single family homes, condos, stick-built houses, and manufactured homes.

"There is not a lot out there," agreed Coldwell Banker's Ken Pearman. "It is pretty tight."

"Two years ago our office alone would have had about 75 listings," said Clarke.

"With all three firms there would have been 300 to 350 listings. That is about what you would expect at any given time in a balanced market in a city this size."

The highly volatile market has driven up prices for single family homes by as much as 30 per cent in the past year, he estimated.

"A house that was selling for about $200,000 to $210,000 a year ago is now selling for $250,000 to $260,000."

Sold within a week

Homes in this price range are among the hottest on the market and typically sell in "less than a week," said Pearman.

Clarke said the demand for in-between housing in the $140,000 to $170,000 price range has been so heated that listings sell almost immediately.

"You can't hold it more than a day and it is gone," said Clarke.

The three real estate firms in the city -- Coldwell Banker, Century 21 and Homelife -- are mixed on when the city might see a return to a balanced market.

Pearman sees a return to "reasonable supply balanced with reasonable demand" in the near future.

"I think that in the next few months we are going to see quite a bit of development," said Pearman.

"When the market is tight enough someone will come in and build. I'm hoping that we will see a return to a balanced market by this fall."

Century 21's Willy Chidowe isn't so sure.

"I think developers are trying to meet the demand but it isn't happening fast enough," said Chidowe.

"The inventory that is being provided now will help but I don't see that it will change much for next year. It will be like this for awhile."

In addition to a shortage of new housing, realtors point to a number of other factors contributing to the supply-demand imbalance in the city.

Interest rates driving market

Chidowe said more buyers are coming into the market as they suspect that interest rates are on the way up.

"Interest rates have a huge effect on affordability. If people think they are going up, they will want to buy now rather than wait."

The soaring cost of renting is playing a part as well, said Clarke.

"It isn't uncommon now for people to pay $1,500 a month for an apartment. That would service a pretty good size mortgage. A lot of people paying that kind of rent are looking to buy instead."

The tight rental scene is also keeping houses off the market, he said.

"That is a very big problem. People who are two or three years away from retirement, for example, want to take advantage of high prices and sell now but they can't. There is nothing else for them to move to."

Other homeowners are simply waiting to see how high prices are going to go before selling.

That's a tricky game in what is now "a very exaggerated situation," said Clarke.

"People ask me every day whether they should sell now or wait. Will prices go down or up? That is what people want to know."

Clarke said that while price ceilings are impossible to predict, most realtors don't think they will be going down any time soon.

"I don't see that happening," explained Clarke. "If for no other reason than the number of houses that have been purchased at the upper end of the price range over the past year. I cannot see the market turning around and prices falling."

According to the Yellowknife Real Estate Board, 244 residential units, valued at $39,444,472, were sold by city realtors during the first nine months of 2002.

The average unit sale price over the nine months was $161,657. Year-end figures for 2002 have yet to be released.

In 2001, Yellowknife realtors sold 275 units valued at $41,090,442. The average unit sale price was $149,420.