High demand leads to higher property prices

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Buying a home in Whitehorse and the Yukon has become increasingly difficult over the past year.

TO Whitehorse Star on August 27, 2021

Buying a home in Whitehorse and the Yukon has become increasingly difficult over the past year.

The latest real estate data show that the average home price in the city is now just over $ 650,000.

That means an increase of over $ 100,000 from 2020.

This is also an increase of $ 60,000, or 10.2 percent, over the first quarter of 2021 ($ 590,700).

This is more than enough to cause concern throughout the area.

Denny Kobayashi, a spokesman for the Yukon Chamber of Commerce, was one of those who said this was bad news for the people.

He told the Star that this is not surprising, but he was stunned at how dramatically real estate prices rose.

He described this issue as one of the most pressing challenges the Yukon currently faces.

Kobayashi said he had heard about the issue from a variety of companies.

According to him, it is difficult to hire workers, but due to the lack of housing, people refuse job offers because they simply cannot find a suitable place to live.

He mentioned one non-governmental organization that recently hired a man for a leadership position.

Soon after, the new employee was forced to abandon him because he could not find a place to live.

Mark Perrault, president of the Yukon Real Estate Council, said the numbers were a little misleading.

“We know what the reason is. Demand exceeds supply, ”Perrault told Star.

However, he suggested that the market is somewhat distorted by two main factors.

First, he said that there are people moving from southern locations in search of new jobs who want and can spend more than the recommended 40 percent of their income on housing.

This helps drive up the prices of more expensive homes.

According to Perrault, this leads to the fact that the proposals are higher than the asking and market price. In fact, there are betting wars, but only for some properties.

Second, Perrault said, there is another group of people retiring to the Yukon.

They often get money from selling their homes wherever they come from, and can also afford to pay more than market rates.

Perrault said both of these scenarios strongly affect property prices, but insisted that “this is not the real market.”

The Yukon is essentially a tiny market, he said, and even a few real estate deals that close above market prices could have a significant impact on the overall numbers, disproportionate to what actually happens.

“This is for fewer houses, but it really distorts the picture of what is happening,” Perrault said. “However, this is not an accurate representation of the market.”

Another factor driving the hot market is simply the movement of people to the Yukon.

According to him, the territory is considered a desirable place and has always been stable from an economic point of view.

He called the Yukon lure “deurbanization,” though of course most people will stay in Whitehorse.

Perrault said he does not expect the market to cool down anytime soon, but he is confident that this will eventually change.

According to the report, in the second quarter of 2021, the total value of real estate transactions in the Yukon was $ 129.9 million: $ 106.7 million in Whitehorse and $ 23.1 million in the rest of the Yukon.

• The median sale price of a detached home in Whitehorse was $ 650,700, a record high of $ 103,900, or 19.0%, over the second quarter of 2020 ($ 546,800).

• The average selling price of a Whitehorse condominium was $ 457,700, up $ 44,900, or 10.9 percent, over the second quarter of 2020.

A total of 91 detached houses were sold, which is 15 more compared to the second quarter of 2020.

• 54 condominiums were sold, down 18 compared to the second quarter of 2020.

• The average condominium price was $ 457,700, an increase of $ 44,900, or 10.9 percent, compared to the second quarter of 2020 ($ 412,800).

• Eleven mobile homes were sold at an average price of $ 371,300, also a record high.

• Five duplexes sold at an average price of $ 476,200, a record high.

The average cost of suburban residential property in the second quarter was $ 780,000, compared with $ 639,000 a year earlier.

Nine commercial properties were sold for a total of $ 6.6 million.

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