A shortfall of available building lots, a population increase in the Yukon and Whitehorse's new green building code are adding up to more expensive housing options and a record quarter of property sales in the territory.

The Yukon Bureau of Statistics' real estate survey for the third quarter of 2010 recorded $83 million in property transactions for July, August and September.

In the third quarter of 2009, real estate transactions Yukon-wide totalled $66.3 million.

As well, compared to the same period in 2009, the average price of a home in Whitehorse rose by $48,600.

The average price of a house in the capital has escalated to nearly $380,000.

"The number of sales has remained relatively constant, but we're seeing bigger increases in condo sales,” said Gary Brown, a spokesman for the statistics bureau.

"As for houses for sale, they're becoming scarcer, and this drives the price up.”

As of June 2010, the Yukon's population was 34,984 – an increase of 827 from June 2009 while investment dollars in mining exploration and development could top $300 million for 2010.

And the steady stream of money and people flowing north looking to make a housing purchase in the territory struggling to meet housing demands are to blame, said Mike Racz, president of the Yukon Real Estate Association.

"It's been a seller's market for the last four or five years ... we've got mines coming online and workers coming up need housing,” Racz told the Star today.

The association tried to warn both the municipal and territorial governments of the current housing crunch, Racz noted. Now that demand for lots is outstripping supply, he said, the Yukon government should get out of the land development business.

"I think it's time to leave it to the developers because (they) will get (properties) out in the market a lot faster,” Racz said. "If we would've had lots available, say 200 per year, that would've have eased the demand, but we've missed the boat.

"But what's past is past, and what we have to do is look at what we can do in the future.”

In 2009, just 19 lots – one multiple family, 11 single-detached and seven duplex – were made available within Whitehorse city limits.

One year later, the city and the territorial government, which develop and sell lots in concert, came closer to achieving what Racz believes is necessary to meet demand and developed 190 lots into the marketplace.

Phase one of Whistle Bend, the city's massive new subdivision currently in the early stages of development, will add 111 lots to Whitehorse's real estate mix, but not until 2012.

And by the time those are available, Racz said, it will do nothing to release the pressure on climbing property values.

"What are you going to do from now until then?” asked Racz, who cites the capital city's less-than-one-per-cent vacancy rate as adding to the crunch.

"So basically, what happens is whatever little available, we run into multiple-offer situations. That's great for people who (own property), but really hard for people coming into the market.”

With the average price of a house in Whitehorse now almost $380,000, the city's super green building code may be good for the environment and homeowners' pocket books down the line, but at the point of purchase for a new home it's just another expense.

Passed into law in September 2009, the city estimated it would add upwards of $10,000 to the cost of constructing a new home, but according to local contractors, that additional expense is closer to $30,000.