The average house price in Whitehorse has risen to a record $455,700.

That number is up from $427, 600 in the previous quarter of this year and from $378, 000 at this time last year.

"It all has to do with supply and demand,” Gary Brown, senior information officer for the Yukon Bureau of Statistics, told the Star today.

"If you've got less homes, and more people are looking than selling, the price will go up.”

Mike Racz, the president of the Yukon Real Estate Association, believes it comes down to one problem: lots, and not enough of them.

Lot prices have escalated by 170 to 200 per cent since 2007, he said.

He doesn't know why the city and the territorial government haven't been able to provide enough lots in this time of surging growth.

"They're trying to catch up,” he said. "But everytime they try to develop something, they get resistance.”

Racz also doesn't know why community associations, environmental groups and other pressures didn't make a fuss when the city's Official Community Plan (OCP) was being put in place.

"They all had a chance for input when the OCP was being developed. Why is it such a big deal now?”

The controversial Porter Creek D subdivision is just one example, he said.

"Right now, we have no land available. If a contractor comes in, they have nothing to build on,” Racz said. "The demand is way outstripping supply.”

Racz is hoping prices will fall once Whistle Bend houses start selling.

Even so, we're at a point where to afford these homes, you have to be able to earn $45 an hour, he said.

He estimates people in Whitehorse, especially government workers, are making an average of $35 an hour.

Racz thinks a lot of Whitehorse residents can afford to buy a $200,000 or $250,000 house. However, there are few available, and when they do come on the market, they're snapped up incredibly quickly.

As for young people trying to buy a house, the realtor said this generation has to be aware of their expectations.

"What do they expect to buy? Something like their parents have, that they've worked 30 to 40 years to afford?”

He suggests starting with something small, building equity, then purchasing something a little bigger.

"Buy what you are comfortable with,” he advised, repeating his motto.

Racz believes it's important to build everything possible now: Whistle Bend, Porter Creek D, infill around the city and more housing in the downtown core.

According to the statistics bureau, the city has set record highs in the past 12 of 19 quarters for house prices.

The average condominium costs $281,000, up from $247,000 last year. The average duplex was selling for $287,000 last year. Now, it's around $335,000.

Whitehorse is doing well when compared to Vancouver, where the average house price is a whopping $792, 000. Toronto is sitting almost identical to Whitehorse, at $454,000.

Compare our northern city to most other Canadian cities in the south, though, and you might feel like packing your bags and driving in that direction.

An average Calgary home is going for $401,000. In Ottawa, that number is $338, 000 while Montreal is even lower, at $300,000.

Head further east and prices drop even more. An average house is selling for $262,000 in Halifax and $153,000 in Fredericton.

The average across the whole country is $365, 000 – just short of $100,000 less than what Yukoners can expect to pay when browsing for their new home.

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