If you’re looking to purchase a single-detached house in Whitehorse, the average price is $629,500. That compares to $635,000 during the first quarter of 2023.
The figure is reflected in a report from the Yukon Bureau of Statistics charting the real estate’s market during the first quarter of this year, the most recent data available.
For semi-detached houses, the average sale price is $511,000, up from $456,700 in last year’s first quarter. Row houses are priced at $451,000 compared to last year’s $450,500.
For condominiums, the average purchase price is $451,000 this year, compared to $403,800 early last year.
The reasons are simple: Bank of Canada policies driving high interest rates until this summer’s two rate reductions; a lack of building permits due to the applications backlog at city hall; and a shortage of available land around the communities.
“But there is one thing to remember: because the Yukon has such low numbers, when there’s a change, it’s amplified,” Marc Perreault, the president of the Yukon Real Estate Association, said this week. “Due to the low numbers, the average seems bigger or smaller than it actually is.”
As the bank hiked interest rates over the past couple of years, he said, the higher rates made it more difficult for buyers to access financing to purchase homes.
At the same time, current homeowners who have to renew mortgages face significantly higher interest rates. Therefore, if they decide to sell their home to avoid the mortgage rate hikes, they have to set a higher price to avoid penalties.
The lack of land access means not enough houses can be built. When the supply is lower than the demand, the price of a single home increases.
A drop in sales numbers has been shown in the Yukon’s housing statistics. According to the bureau of statistics’ report for this year’s first quarter, “the total value of Yukon’s real estate transactions in the first quarter of 2024 decreased compared to the first quarter of 2023.”
The data also show a drop in sales of single-detached houses, from 34 in the first quarter of 2023 to 26 during the same period this year. The average sale price has also fallen by 0.9 percent.
The reason: single-detached houses are usually more expensive, Perreault said, and the amount of available land to build more houses is limited. People are looking for more affordable homes to purchase, causing a drop in demand.
“The price of housing continues to increase, and fewer people can afford single-detached housing. Therefore, those who need to sell their homes to relocate, downsize, or for other reasons may be forced to sell at a slightly lower price,” said Perreault.
Despite this, he still believes the market in the territory is healthy and strong. The overall market is stable and strong, he said, but the only problem now is a reduced market due to the lack of available housing.
Looking into the future, he believes people will continue to expect what they’re seeing right now.
Continued interest rate cuts could stall the market a little, as some home buyers may wait for the next rate reduction.
