Photo by Whitehorse Star
Several factors are propelling local housing prices upward
The prices for single-detached houses in Whitehorse continue to rise, according to the real estate report on second-quarter sales this year.
The prices for single-detached houses in Whitehorse continue to rise, according to the real estate report on second-quarter sales this year.
The average price for houses sold in April, May and June was a record high of $546,800, up $17,300 or 3.3 per cent compared to the second quarter of 2019, says the report released Friday by the Yukon Bureau of Statistics.
There was a total of 173 real estate transactions in the second quarter, of which 76 were for houses, or five fewer than the same period last year.
There were 72 transactions for the sales of condos, up from 66 in the second quarter of 2019.
The average price for condos in the second quarter was $412,800, up from $354,700 in the second quarter of last year.
The seven duplexes sold went for an average of $412,700, up from $378,700 in the second quarter of last year.
The four mobile homes sold in the second quarter went for an average of $290,200, down from $341,300 in 2019.
Marc Perreault, the president of the Yukon Real Estate Association, said today there are a number of factors influencing house prices.
The supply of available housing lots is a factor, as demand has outstripped the supply of lots, a situation not unfamiliar for Whitehorse, he said.
“It seems we are having trouble keeping on top of that segment.”
Perreault said Whitehorse is seen as an attractive place to settle down and raise a family. The territory is seeing lots of people moving here to get away from the large urban centres, and that trend is continuing.
Students – academics and trades – are returning to the Yukon to begin their careers and there are often well-paying jobs available with the Yukon government, he said.
The territory’s economy, Perreault said, is doing well despite the COVID-19 pandemic, because it is a government based economy.
The real estate president said it doesn’t take much to influence the overall average price as just two or three homes that sell noticeably higher can drive up the average with relatively few houses sold compared to city’s like Vancouver.
Country residential properties continue to be the most expensive, with the nine properties sold in the second quarter going for an average of $639,600, down from $693,200 in 2019.
Homes in Copper Ridge fetched the second-highest price at $606,700, followed by Whistle Bend with an average price of $588,600, Porter Creek at $503,300 and Riverdale at an average price of $482,800.
Excluding the country residential properties, the average price for a house in Whitehorse in the second quarter was $534,300, up from $501,000 in the second quarter of 2019.
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Comments (22)
Up 8 Down 1
Where does the money go on Oct 4, 2020 at 11:11 am
We know building and lot prices in Whitehorse are very high. But I’ve always wondered why nobody questions the insane amount of money it cost when the government builds apartments or any social housing projects. Private developers are selling condos for less than $450k which includes land purchase while still making money. That works out to about $500 per sqft. The government builds single bedroom apartments for drug users that comes in at about $12 million for 20 units. Or how about over 30 million for the low cost apartments with the best view in town. Maybe the government should just let the condo developers do the design and build of low cost single bedroom apartments to minimum requirements.
Up 4 Down 0
Groucho d'North on Oct 4, 2020 at 9:58 am
Real estate is not about having a place to live anymore, it's an investment opportunity where you buy low, invest some fixer-upper money and sell high. The buy low part got displaced by the sell high objective.
Every four or five years the lack of building lots becomes the central topic. I haven't checked the land claims maps but there is a whole other side of the river for Whitehorse to develop and grow into. The OCP dies an early death whenever it is updated due to a variety of sensitivities. As I have complained before, Kwanlin Dun and Ta'an have plenty of leasable land for these purposes and could solve many - not all - of our housing challenges, if only somebody would pull their thumb out and get on with the job.
Up 14 Down 1
Jim on Oct 2, 2020 at 9:27 pm
Housing prices will never be going down as long as demand can’t be fulfilled with supply. The government seems to be very careful to keep the lot supply shortage ongoing. The lots are no longer sold at the development cost. A decade or so ago lots started being sold at market value and the result is small city lots for almost 200k. Then the cost to build has risen rapidly along with qualified labour shortage. Permits, development fees and engineer fees are also substantial. Costs per square foot are pushing the $400 mark. This is just the sad state of Yukon building. It doesn’t care what your salary is.
Up 16 Down 2
Waiting to buy on Oct 2, 2020 at 10:46 am
I first moved up to Whitehorse ten years ago, left for a few years, and came back last year to see that the market has soared. I have a good down payment and a good job, but still feel very uncomfortable paying over $550,000K on a single income to own a house! And most of these houses still need renovations! There are hardly any options for less than $400,000, even townhouses and duplexes are currently selling for almost +$450,000. I understand the argument that prices are market driven, and if people are willing to pay these prices, then it's their fault for buying... But we all need a place to live. The rental market has increased in lock step - one bedroom apartments are renting for $1500-1800 a month. Lots of houses are renting for +$2400 plus utilities. Even rooms in a shared house are often $900-1000 month with utilities.
I would personally like to own a home, and am fortunate enough to have the luxury of time to wait a bit to see how the market reacts. But I believe this is a serious problem within our community. Our young people need to be able to save money and save for their future. It's an exceptionally challenging time for our young people, who often have student debt, pay $900-1000 a month to live in a shared space and try to actually save and get ahead. If anything, covid has highlighted the need and importance of a lot of our low-end paying jobs like grocery workers, gas attendants, etc. How can we expect to have people working those jobs and afford to live in Whitehorse? What is the city/territorial governments planning on doing to address these issues?
Up 19 Down 4
Atom on Sep 30, 2020 at 12:41 pm
@who can?
Yes so they spend all available income on 'a mortgage'....what do they do after the bi-weekly payment? Pay insurance, heating, internet/phone, groceries, property taxes, maintenance, etc.
I guess they get to sit in the house and watch tv because there is nothing left to go on the town or buy anything for recreation....certainly no vacations (ya ya covid) or contribute to any other business in the Yukon (restaurants bye bye)....they will be lucky to own a car, gotta put gas in that....
If they have kids..….
Up 22 Down 2
Crunch on Sep 30, 2020 at 10:30 am
The people who foster and encourage this onslaught of free money coming into the territory are the problem. You know who they are and they are so simple because they think they are doing everybody a favour. THEY'RE NOT!! They are the ones who are screwing up any semblance of normal filling their own pockets with money and also their friends. Wake up people or you'll be paying a million bucks for a house in Whitehorse.
Up 14 Down 1
Max Mack on Sep 29, 2020 at 11:39 pm
Marc Perreault. Isn't that the same guy that sold us down the river on the new oil burning regulations?
Up 27 Down 3
Erik Bell on Sep 29, 2020 at 6:27 pm
Wonder what will happen if Ottawa cut the billion cash flow in half?
(don't forget half of that are Government salaries)
Up 25 Down 3
John on Sep 29, 2020 at 4:38 pm
@ Yukoner...hmmm i think you have it all wrong, real estate agents tell the vendors what the house is worth, greedy homeowners say I want more and ask for more and guess what? People pay it. Remember, a house is only worth what someone is willing to pay for it.
Up 28 Down 1
Crunch on Sep 29, 2020 at 2:03 pm
As long as the millions keep pouring into the territory the only direction is up for housing. Then you have people who won't be happy until there are 100,000 souls living in Whitehorse and 80% of them working for the gov. That's going to be some fun isn't it? Hopefully this covid BS keeps going and the taps have to dry up. God love a duck!!
Up 25 Down 3
stephen on Sep 29, 2020 at 1:18 pm
Interesting why the reporter never asked the city and government politicians what they are going to do in the next 12 months to bring more lots online to drive down the house prices.
I do get an image of miniature realtors on all politicians shoulders whispering in their ear "say ya we will and then walk away smiling behind their back. Now that's a good puppet.
Up 36 Down 9
Jacqualyn cromarty on Sep 29, 2020 at 11:06 am
I agree, it's the real estate people driving up the market. They have nothing to lose and everything to gain.
Up 29 Down 2
Who can? on Sep 29, 2020 at 8:07 am
Who can afford this?
First - those who already own a home and have benefitted from previous equity. There is now a lot of 2nd & 3rd house buying for rental/investment from those who have equity in houses bought 5, 10, 15 years ago. This is sucking up supply.
Second - average Whitehorse household income is approx. $105K which gets you a mortgage over $500K with a downpayment = average house price at these levels. A $500K mortgage is a $2,000/month payment, what can you rent for that?
In Whitehorse a $100K household income is two entry level government jobs or one middle management position. There are plenty of both available.
Up 24 Down 13
Matthew on Sep 29, 2020 at 6:58 am
Great.. just imagine rent prices... if people buying 2nd or 3rd homes for rentals, they still need to make profit on a $2500 mortgage... meanwhile the city thinks it's OK to spend $30M on a new city hall.. anyways, so many people will be stuck in houses worth $200K while paying $550K. Will also see a sharp rise in new homes as materials have gone through the roof.. can't wait for next year's collapse of the banking, housing, stock crash! Will be at least 3x worse than 2008..
Up 24 Down 8
Josey Wales on Sep 29, 2020 at 5:43 am
Yes and driven by political blowholes of all stripes, this "land" issue.
Helps to weaken the middle class, decimate the ones below them...to achieve their means of a NWO and or complete control over every aspect of our life.
A country divided and squabbling is easier to fleece than a country strong and united...simple!
Our civic windbags are complicit too, just often to stupid to realize it.
Up 33 Down 5
Jack on Sep 29, 2020 at 12:15 am
This demand is interest rate dependent and government worker driven, not organic.
Everyone knows this wouldn't happen in a 7%-10% interest rate environment.
Up 46 Down 1
Carpenter on Sep 28, 2020 at 10:13 pm
Expect prices for new homes to rise even more! The effect Covid has had on the lumber market is very significant. Prices for most lumber and plywood products have doubled since this spring.
Up 50 Down 4
moe on Sep 28, 2020 at 7:32 pm
Pretty much every single resale includes a $7,000 oil tank replacement, realtor fees of $20,000, a CMHC fee of $10,000 or more, and then $150 a month or more for insurance just to buy the place and get a mortgage. Property transfer fees are reasonable, but should be capped because the amount of work done is the same no matter if it's an expensive or cheap house, therefore the transfer fees to Land Titles have been going up, up, up along with the prices of the houses.
The nonsense with the oil tanks since I have lived here: 1. no underground, take them out and put them in your basement. 2. no indoor, take them out and put them beside your house. 3. make them earthquake proof with a concrete ballast platform. 4. make them earthquake proof and double walled on the lower half. 5. make them earthquake proof, double walled, and put a pump at the top so the oil comes out the top, not the bottom.
What a racket! No wonder people are switching to electric heat.
Next up, the 'green' requirements which get more outlandish every year with no consideration of how large the house is or how many people live there. If 5 people are living in a 1400 sq ft house, as individuals they are 4x 'greener' than 2 people heating a 2500 sq ft house all things being equal, so give them a freaking break on the R60 ceilings and expensive heat exchangers.
No such thing as a simple roof over your head any more. The Sustainability Department has made sure of that. You have to earn $250,000 a year to own a home now, and that's the kind of city they want. It's ridiculous.
Up 17 Down 9
Wilf Carter on Sep 28, 2020 at 6:26 pm
Good report but what missing there is 4 and 5 families living in one house. These numbers means that more people can't afford a home until the market comes to a grid lock and falls apart and goes down like it has in the past in Yukon.
The City politicians like our mayor is not pushing for more economic land development to lots down to, at tops, $90,000 each instead up to $215,000.
If mines open in the Yukon and need homes for 300 employees we can supply any affordable housing for them.
Right now mining development has to fly most of their workers in and out.
So what benefit is that to our economy? None!
We do not get people living here without a home to live in, paying property and income taxes which goes some where else like BC.
We don't get anyone spending here buying goods and creating jobs.
Taxes gives revenues to governments but they can't seem to see that.
Politician do not see the future and understand the real out come and what needs to be done to take advantage of it for all Yukoners good.
Up 16 Down 26
JC on Sep 28, 2020 at 4:54 pm
Anybody that would pay that kind of money for a house is a fool. Everybody should stop buying for a year. Watch the prices come down. It's the purchasers fault. Enough said.
Up 101 Down 19
Yukoner on Sep 28, 2020 at 4:00 pm
What Perreault doesn't mention is the realtor influence. That is, when someone says "Id like to get $500,000 for my house, and the realtor says we can get you way more than that. The only people winning in this market are the realtors. Even if you sell, you still have to buy back in.
Greed, pure and simple.
Up 105 Down 6
But how? on Sep 28, 2020 at 3:19 pm
Seriously....who can afford this? I can't and I'm in a dual income house that makes a decent wage.