Local shortage of lots is still the problem: realtor

July, August, September proved to be the second-hottest quarter in real estate transactions on record.

July, August, September proved to be the second-hottest quarter in real estate transactions on record.

Again, sales in Copper Ridge powered the Whitehorse market for home buyers.

Territory-wide sales for the third quarter hit $66.3 million, up $389,000, or 0.6 per cent, over the same quarter for 2008.

Not since the record third quarter of 2007 have sales of single-family homes, condos, mobile homes and commercial properties been as brisk.

While the Whitehorse market alone was up just a hair over the summer months of ’08 at $55.9 million, rural sales rose by 2.4 per cent at $10.3 million.

Overall, the average price of single-family houses rose to $330,300, up from $329.8 in the third quarter of 2008, but up almost nine per cent from the beginning of the year, when the average house was selling for $304,000.

“This year, our economy really kind of powered through the national economy,” Terry Bergen, president of the Yukon Real Estate Association, said in an interview this morning. “Really, we were strong all year.”

Bergen said the positive trend was pushed along by a growing mining industry, with continuing success of the Minto Mine, and the substantial investments by the Yukon Zinc Corp. to get the Wolverine Mine into production, and by Alexco Resource Corp. to bring its Bellekeno deposit on line.

Money spent on exploration this year, while down from the record levels of the past two years, was still significant, he said.

In this year of a record $1-billion-plus territorial budget, Bergen noted there was also the spending on major infrastructure – projects like the new jail, and the city’s new office complex/fire hall at the top of Two Mile Hill.

Demand, he predicts, will remain just as strong into next year.

“The only thing we are worried about in real estate is a real shortage of lots,” Bergen said. “And there is no solution in the short term.

“Even the Ingram (Arkell extension) will not be ready until mid- to late summer, and Whistle Bend until 2013.”

The lot shortage, he said, has definitely contributed to the escalating price of home sales, even existing homes because of the pressure the shortage puts on the supply and demand curve generally.

“Because there is no lots, supply can’t meet demand, and our demand has been strong.”

Bergen said the construction of multi-dwelling units in the last three or so years has helped tremendously, particularly in the downtown alone, where there have been 100 condo units provided.

According to the most recent real estate statistics, the price of a single-family home in Whitehorse has jumped 88 per cent over the last five years, from $165,800 in the third quarter of 2003 to $330,000 last summer, after inflation is accounted for.

In Copper Ridge, where total home sales hit $13.9 million during July, August and September, the average price for a single-family home was $348,600.

Statistics show sales in Riverdale fell in the third quarter to $6.8 million, down from $8 million in the same period last year, with the average price of a single-family house remaining virtually the same at $307.6 million.

Homes in Porter Creek were selling for an average of $315,900 in July, August and September, compared with the average of $321,600 in the summer of ’08. Total sales this past third quarter hit $5.7 million, up from $5.1 million in the same period last year.

The six single-family homes sold in the downtown last summer went for an average price of $293,900, for total sales of $1.76 million.

On average, country residential homes were selling for $360,200, with all sales totalling $4.7 million in the third quarter.

The single-family home market accounted for $34.7 million of the $55.9 spent on real estate in Whitehorse last summer.

The average condo was selling for $234,600 in the third quarter, with all condo sales in the third quarter totalling $4.5 million.

Mobile homes were going for an average of $192,468, with total sales hitting $3 million.

Interest in duplexes fell slightly last summer, with an average price of $244,985 and total sales of $4.9 million, compared to total sales of $5.3 million in the third quarter of 2008.

Commercial real estate transactions accounted for $3.6 million in sales over the summer, while the sale of industrial properties totalled $2.3 million, according to the real estate statistics.