Photo by Vince Fedoroff
A GROWING CITY – The Whitehorse waterfront has been filling up the last few years with condominia, with some commercial space, seen here Sunday.
‘We are seeing an issue of supply and demand’
As has been typical for several years, the price of housing in Whitehorse continues to go up.
As has been typical for several years, the price of housing in Whitehorse continues to go up.
The rising prices are detailed in the real estate report for the fourth quarter of 2021. It was released last week by the Yukon Bureau of Statistics.
The average price for a local single-detached home in the last three months of 2021 was $647,000. That represents an increase of $48,600, or 8.1 per cent from the fourth quarter of 2020.
The average price for duplexes hit a record high of $538,800 in the fourth quarter, as did the price of mobile homes, selling for an average of $420,000. The average price of a condominium in the fourth quarter was $468,900.
The report says there were 306 single-detached homes sold in all of 2021 compared to 288 in 2020. The average price for the year was $645,000, representing an increase of $80,300 or 14.2 per cent, compared to the average annual price of $564,700 in 2020.
Marc Perreault, the president of the Yukon Real Estate Association, told the Star this morning the increase in real estate activity is a reflection of a healthy economy and the growth in population.
“I think what we are seeing right now is an issue of supply and demand,” Perreault said.
“People are buying what they can get. Strong economic growth in the public sector, and growth in the population, that is what is driving demand in the market.”
Perreault said it will be interesting to see what happens in the housing market in the first three months of this year with increases in interest rates, which began last week.
The speculation on pending rate hikes likely prompted some people to buy in the fourth quarter of 2021, he said.
There was a substantial increase in commercial real estate activity last year compared to 2020, but Perreault said you have to be careful when you look at commercial activity.
Commercial sales in 2021 jumped up to $48.3 million, compared to $24.9 million in 2020.
There were 58 commercial sales last year, or more than double the 28 commercial sales in 2020.
“One big deal, or two big deals make a difference, but we are definitely seeing an increase in commercial interest and activity,” he said. “We are getting inquiries from outside the territory.”
The total value of real estate transactions in the Yukon during the last quarter of 2021 was $128 million – $107.3 million in Whitehorse and $20.8 million for the rest of the territory.
There were 189 real estate transactions recorded in the fourth quarter of 2021. That represented an increase of eight from the fourth quarter of 2020, but was significantly above the five-year average of 157.
A total of 78 single-detached houses were sold in the last three months of 2021, or nine more than the five-year average of 69 fourth quarter sales.
The average price for one half of the 16 duplexes was a record high of $538,000.
The report says the total value of duplex sales in the fourth quarter hit a record high of $8.6 million.
The record high of 33 duplex sales was set in the second quarter of 2004 and the third quarter of 2003.
The sales of 58 condos in the fourth quarter of 2021 were three more than the average fourth-quarter sales in the previous five years.
There were six mobile homes sold in the fourth quarter of 2021, equalling the average in the previous five years.
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Comments (21)
Up 0 Down 0
Sirius on Apr 24, 2022 at 4:44 pm
Labor and material shortages are presumably creating a bottleneck in the supply of housing, which would contribute to driving up the sales prices. I've just arrived in town and hope to buy a home, but given my budget the choices are pretty discouraging.
Up 9 Down 0
Groucho d'North on Mar 11, 2022 at 12:22 pm
@Anie
The 'Housing is a Human Right' topic often gets tossed around without any context to why the UN included this topic in their 1948 Universal Declaration of Human Rights. In 1948 and in the years following the end of WWII there was mass confusion as people in all the affected nations struggled to get back to a normal life. As you can appriciate, there were still feelings of regional hostility and amid the destruction of cities and a huge loss of housing options. Some people could not acquire suitable shelter based on their last names and suggested political sympathies. It was the same for families seeking food and other necessities. So the UN made their infamous declaration to help people to be more understanding and sympathetic to the needs of all people during the rebuild following the war. There are a number of legal papers that have been created to deal with the interpretation of this Declaration and what it means in today's reality.
Yes, all people have a right to adequate shelter, but that right does not mean somebody has an obligation to provide it to them. Google it, there's lots to read from a variety of perspectives.
Up 9 Down 1
YD on Mar 10, 2022 at 2:28 pm
Max Mack, what if a large group of people wanted to move into your home, would you let them? One or two might not disrupt your life, but what if twenty people wanted to move in? Would you be racist for setting up boundaries?
Up 11 Down 0
BB on Mar 9, 2022 at 5:21 pm
Stating that Canada should examine our policy of allowing foreign residents the same rights as Canadian residents to own Canadian residential real estate is an observation of reality, not 'xenophobia'. Nice try with the 'racist' card.
Canada is a country that is safe and stable, and has an affordability problem with housing. One thing driving up costs is housing being used as a speculative or 'safe keeping' investment. It might be a minor contribution, it might be a significant contribution. It's worth looking at. Why should non-residents have the same rights as Canadians when it comes to purchasing residential property in Canada? Or farmland, for that matter? The foreigners buying are not the poor and woe-begone. My sympathy for them is limited. I care far more about Canadians being able to afford a house to live in, or a farm. I do not know how big of a contribution this is making to the high prices in Whitehorse, but it's worth looking into.
As for 'proof', some of the other people reading this know what I'm talking about. I know of a little bit of foreign investment going into residential housing in Whitehorse. Local realtors and lawyers would know far more than me. It should not be off limits to examine this contribution to our housing costs.
Up 28 Down 1
Anie on Mar 9, 2022 at 3:33 pm
There's a huge difference between 'affordable housing" and "I have a right to home ownership' and, as a society, we seriously need to make up our minds about which one we are discussing.
Up 13 Down 3
Mitch Holder on Mar 9, 2022 at 11:59 am
Like that time the YTG sat on 18 million in federal charity for nearly the last decade, while empty buildings rotted around town and everyone was building glass condos nobody wants? Apartments buildings are needed for younger tenants to save to buy a home. I am not a smart guy, I just use my brain well. Vote me for mayor.
Up 19 Down 7
So what's the solution? on Mar 9, 2022 at 3:17 am
If the problem is truly supply and demand, it can only be solved by reducing demand or increasing supply. But there's more to it - a sudden flood of moderately priced houses would mean a huge hit for those people who bought 10 or more years ago. If I was to list my house today (purchased in 2013 for $439k), I'd ask at least $700k. The current market is creating false 'wealth' that would quickly disappear if a large number of reasonably priced homes suddenly became available.
Up 41 Down 9
yukongirl on Mar 8, 2022 at 1:30 pm
Supply and demand? More like government greed. I looked at the new land lottery -- a minimum of $100K for a lot in Whistlebend and $250K in Logan. It's so ridiculous.
Up 10 Down 23
Dicksons Duramax on Mar 8, 2022 at 11:22 am
Move the airport. Simple
There’s oodles of prime real-estate there.
Someone in our governments needs to start thinking big.
Up 25 Down 2
Dave on Mar 8, 2022 at 11:20 am
This has all stemmed from past and present governments. Just poor planning.
Up 35 Down 8
Groucho d'North on Mar 8, 2022 at 9:55 am
A goal without a plan is just a wish. A wish is not a strategy.
Clearly we need some better planners making decisions for our housing needs. The Yukon is playing catch-up in meeting our existing housing needs. Does anybody look to the future beyond next budget or the next election? Over the recent years an unconfirmed number of new Canadians were sent to the Yukon by our federal government with no plans to create housing for these individuals and families. Resulting in even greater pressure on our limited real estate sector. Just the other day our Prime Misery promised sanctuary and a future life in Canada to those fleeing Ukrian and the Russian opprestion. Have any of the political leaders yet had a discussion on where these new refugees will live? What new housing programs are being developed to ease the pressure on already constrained housing availability in not just the Yukon, but all of Canada? These people are going to need jobs too and schools for their children. Is anybody looking at the bigger picture and drafting plans so we are all not negatively impacted by Canadian generosity? Yes we can help others in dire need- we're Canadians and that's what we do, but we need to have workable solutions to ensure the Canadian quality of life remains for all of us.
Over promise and under deliver appears to be the Liberal motto.
Up 5 Down 6
Wilf Carter on Mar 8, 2022 at 9:39 am
Nailed it.
Up 30 Down 19
Matthew on Mar 8, 2022 at 6:28 am
Oh please, stop pretending to know what you're actually talking about. Here's an idea, fire 20% of YTG staff, that will help ease the market. It's a false market here due to the fact countless positions are temporary, or contract basis. Or make a new bylaw, contracts 1 yr or less, can't buy a home!
Up 17 Down 4
Yukoner61 on Mar 7, 2022 at 9:14 pm
@BB What evidence do you have for a bunch of foreign capital flooding our housing market? This isn't Vancouver or Toronto and I highly doubt a city of our size could ever attract the attention of big money launderers from other countries.
Evidence of such a thing usually comes when you have a cooling economy yet rising housing prices. In Yukon we have a good economy, so there is no reason to think our housing prices are out of the norm.
Up 23 Down 5
Yukoner on Mar 7, 2022 at 9:14 pm
@BB The issue isn't "foreign investors" at least not here. As the article says, we have a "supply and demand issue" and it's been like that for a decade. Until that is solved, nothing is going to change. And it doesn't matter how bad Sandy and his NDP buddies try to cap things.
Up 27 Down 8
Max Mack on Mar 7, 2022 at 6:27 pm
@BB
Absolute poppycock. There is ZERO evidence that foreign money is buying up residential properties.
Put your money where your mouth is and provide convincing evidence.
Otherwise, park your xenophobia where it belongs.
Up 35 Down 0
Olav on Mar 7, 2022 at 5:13 pm
This isn't just a Yukon issue.
Housing prices across Canada are up, in many cases, more so than the Yukon market.
Affordable retirement down south is now out of reach for most Yukon retirees.
Up 40 Down 20
Mr Facts on Mar 7, 2022 at 4:23 pm
First off, I have no problem with immigration. My Grandparents immigrated here a long time ago. But this opening the flood gates to the world is a deliberate attack on natural born Canadians at this time in history. So create your useless committees, have your useless meetings, because if you choose to put your head in the sand and look the other way of what is really going on here, then you are apart of the problem, period.
Look at how Whitehorse has turned into. A little Vancouver, complete with a little brother Hastings. It's absolutely pathetic what this City has turned into when every yahoo can come here. You have businesses that whine and complain that they can't function without TFW's. Don't worry, Daddy Silver just gave you an early Christmas present.
The banks need every sucker they can to continue this Ponzi scam called real estate. Are you starting to see what's going on? Or are you too busy counting all your free money from this fake economy supported by a real estate sector? Even if you own a house, take heed, take heed.
Signed a 4th Generation Yukoner
Up 5 Down 17
bonanzajoe on Mar 7, 2022 at 4:13 pm
Well, like I have said before, anybody dumb enough to pay those prices deserves what they get. It's not "supply and demand", it's demand and get it.
Up 61 Down 15
BB on Mar 7, 2022 at 2:38 pm
Foreign investment in residential properties in Whitehorse should be examined. Rich people put their money in real estate and the stock market. The markets are volatile and likely at their peak - actually on their way down for a time, and real estate in some areas of Canada is still a safe bet at worst, and a speculative buy with good gains at best. Lots of renters to pay high rents while you wait for appreciation or park your money, too.
It is too easy for non-residents of Canada to buy residential housing here. It's a problem, and many countries absolutely do not allow it.
Up 84 Down 23
YT on Mar 7, 2022 at 1:58 pm
If you look at the land outside of the city, so much of it is tied up sizeable parcels of agricultural land, which was essentially given away during the ill-managed Ag Lease days. The vast majority of these parcels are not being used for agriculture in any form, yet there they sit while people are clamouring for country residential.
This land should be returned to the government, the people compensated for what they paid for it (+interest) and have it subdivided Into 5 acre parcels. These speculators shouldn’t be rewarded for buying agricultural land they never had any intention of working.