This afternoon CMHC circulated an update to lenders confirming that effective immediately it will once again insure mortgages in the Northlands neighbourhood. CMHC withdrew its support for mortgages in the area way back on April 10, 2010, due to sewer and water infrastructure issues (see this CBC article with the April 10th announcement). CMHC’s withdrawl led to to a “hands off” stance at the charter banks, effectively freezing sales in the neighbourhood for almost five years.
What does this mean for the Yellowknife housing market? While it’s difficult to predict the full impact, it should mean a lot more affordable housing units will be hitting the market this spring than we’ve been used to in years past. 258 homes in total were affected by the freeze.
For further background on Northlands’ infrastructure issues, see this article from Edge YK.
