Real estate figures reflect a downward trend
It’s a buyer’s market, at least if the latest real estate figures in the territory are any indication.
It’s a buyer’s market, at least if the latest real estate figures in the territory are any indication.
The second quarter figures for the year were released this week by the Yukon Bureau of Statistics.
They show both the number of homes sold and the prices are down compared to averages over the last five years.
“There were 133 total real estate transactions in Whitehorse in the second quarter of 2014 compared to 164 transactions in the second quarter of 2013,” reads the bureau’s release.
“Over the previous five years, the second quarter average number of total sales was 179.”
The figures show that 76 single-detached houses were sold in the territory in the second quarter of this year compared to an average of 86 in the second quarter of each of the last five years.
The number of condos sold was also down by 10 – to 76 – over the second quarter average of 86 in the second quarter of each of the past five years.
Meanwhile, the number of duplexes sold is half of what it has been at eight in the second quarter compared to the average of 16 in the same period over the last five years.
Finally, there were just seven mobile homes sold compared to an average of 13 for the second quarter since 2009.
Average prices in each of those categories for the second quarter of this year came in at $425,000 for a single-detached house, $304,700 for a condo, $304,200 for a duplex and $228,400 for a mobile home.
It was homes in country residential neighbourhoods that came with the highest average price in the second quarter, at $536,700.
Prices on all types of homes are significantly lower than where they were just a few years ago.
As stated in the documents from the bureau of statistics, the highest prices for all types of homes were in 2011 and 2012.
The second quarter of 2011, for example, saw the highest average sale for mobile homes, when it reached $272,800.
“However, it should be noted that there is a fair bit of volatility in the average sale price of mobile homes due to the relatively small number of sales in any given quarter,” it’s noted.
Record sales were seen for both condos and duplexes in the second quarter of 2012, with $24 million spent on condo purchases compared to $9.8 million in the second quarter of this year; and $7.7 million spent on duplex purchases in the second quarter of 2012 compared to $2.4 million in the most recent statistics.
Val Smith, the Yukon Real Estate Association’s president, said early this afternoon the results do not come as any surprise.
While it’s certainly a buyer’s market, Smith commented: “I think we’re kind of at a nice place.”
At the peak in 2012, there was little land supply, mineral exploration was at an all-time high and other factors all contributed to the high real estate prices.
Prices have moderated since, with more land and many housing options available.
“It’s much more of a balanced situation,” Smith said.
She suggested that a variety of scenarios – the opening of a new mine, for example – could see the real estate situation turn around and demand rise again.
Overall though, she suggested, the situation remains positive even if prices have fallen in recent years.
Almost all the new homes in the Ingram subdivision have sold, and “Whistle Bend has supplied beautifully” and will continue to grow in the coming years.
Smith acknowledged though that those who purchased homes at the peak and are now looking to sell could take a hit on their dwellings.
And there are those cases of people who are moving out of the territory for work or other reasons.
Rent prices, she noted, also continue to reflect the price on a home that was purchased during that period of record high costs.
As she noted, in real estate, it’s important to have that long-term view.
Comments (5)
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Wilf Carter on Nov 12, 2014 at 11:59 am
What I was told by callers on housing - On the affordable housing issue a European individual stated to me that in Europe and in Asia people knew it would take several generations to pay for a home and the families would live together from grandparents to the grandchildren to pay for a home. Once the home was owned they would start the same process over again. I think some of the new people moving to the Yukon are using the same tactic. Also they would receive long term fixed mortgages of 50 years. This would fix the cost of financing a house and families would know their cost of having a home. It would reduce the renting and increase the ownership for more people and families.
I had an opportunity to work in Los Angeles in 1978 and 79 for Oxford Developments based in Edmonton, Alberta. They were looking at developing a commercial project in the major centers in the US. I checked out the housing cost close by Disney World where the project would be developed. The average price of a house was $65,000 which was high according to locals. But the saver was you could get 25 year fixed rate mortgages for 2 or 3%. What I was told in the last week is, we the Yukon people and families have to start thinking out of the box to resolve the housing issues. What do people and families of the Yukon think? It is just an idea. Another thing I was told we have to stop relying on government to solve our problems, they are only people doing their best. The people making these types of statements will never speak out in this environment because they don't mind being questioned on what they state but when people start personal attacks forget it.
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Wilf Carter on Nov 10, 2014 at 8:10 pm
Good point Frank keep bring out your opinions more people need to do it.
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Frank on Nov 9, 2014 at 8:03 pm
Wilf, stop being political! The reduction from 30 to 25 years for mortgage amortization had a greater impact on housing affordability than anything the Yukon has done. As always, we are at the mercy of what is happening in Ontario.
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Adele Sandrock on Nov 9, 2014 at 2:15 pm
Wilf Carter - I applaud you, you must have a lot of time on hand to write your opinion on almost every article in the newspapers.
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Wilf Carter on Nov 8, 2014 at 6:08 pm
Canada real market prices are over inflated by an average of 15 to 20% or more depending on where we live. I like to know how much is the COW over inflated housing prices are? When it takes two YTG salaries to afford a house then income to cost of housing is way over inflated and will fall. When the market is out past what people can pay for, than it is done. For this very simple reason there is no easy solution for affordable housing in the COW. If you have two YTG salaries to make enough money to have the ability to purchase a house means a family would have to be earning at least $130,000 a year.
If you take a look at the low income earners making at best $70,000 per year together the numbers show for the affordable housing program to work in the COW, each low income earnings household would have a short fall of $60,000 per year. Do the math, where is that 85% affordable housing support to low incomers.
I agreed with the NDP that a lot of low income earners money goes to housing and leaves less for other needs.
That $11 million dollar housing trust fund would be gone in several years and than what? Mr Curtis, Silver, and Hanson have someone give you the facts of affordable housing. Alberta is going through the same issue as Toronto and other regions are. Dan, Sandy, Brad, and Liz get out of the political B'''S and come together on a plan to solve the housing issue. Don't let your political ego's get in the way of common sense.