SOMBA K'E/YELLOWKNIFE
Ryan Sawatzky, owner and operator of PropertyGuys.com Yellowknife, said that buyers and sellers should expect a typical season this year, with the exception of older modular homes.

Sandra Turner, the affordable housing consultant who represents all three territories for the Canadian Mortgage and Housing Corporation, sits in her office at the Northwestel Tower. Turner said the real estate situation in the city is balanced between buyers and sellers, but labour and land development costs are still very high. - Karen K. Ho/NNSL photo

Those are expected to be more difficult to sell because they lack many modern amenities and their inherent need to make minor renovations that aren't present in newer trailers.

For those who are interested in a more traditional single family home, Sawatzky observes that demand for properties valued at $900,000 or more hasn't dropped off, with buyers secured after being up for sale for less than a week.

"It's emotionally driven," said Sawatzky who has five years of real estate experience in the city.

"The industry as a whole is doing well."

Sawatzky pointed to million dollar homes in the Great Slave project as a pretty good marker for growth.

However, Sandra Turner of the Canadian Mortgage and Housing Corporation, said a lot of development depends on city decisions regarding land. Turner, now the affordable housing consultant for all three territories, said that it was normal for big, single families homes in Yellowknife to be valued at $750,000.

"The $300,000 to $350,000 condos just became available three to four years ago," she said, citing the city's affordable housing plan.

The high cost of renting in Yellowknife is still pushing many people to buy. But Turner pointed out that even with this steady demand, it's difficult for new real estate projects to obtain financing due to high costs.

"Private developments need to be 80 per cent sold before getting financing and starting construction," she explained.

Even with the lower price of oil leading to lower transportation prices for materials, Turner said land development as well as labour often resulted in high costs.

"It's really hard to find good people," she said.

The collapse of the oil and gas industries in Alberta might make it a little easier for companies in Yellowknife to recruit staff, but Turner said many people in the specialized trades don't often stay in the city.

Ultimately, Turner said her biggest worry was a misunderstanding about the obligations and requirements of a condominium. "You're taking an interest in a condo corporation," she said, referring to the situation at the private Northland Trailer Park which declined to a breaking point after the water and sewage lines were 15 years past their replacement dates. In 2012, the Canada Housing and Mortgage Corporation stopped insuring trailers in the park because of the state of the infrastructure.

While there have been a lot of new, entry-level condominiums built and sold in the city, Turner said taking a look into the condo corporation's reserves, fees and how everything is operated is key.

"They need to follow what's going on in their building because they have a vested interest," she said.

-with files from Randi Beers

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