Whitehorse housing picture described as a complicated market
The first-quarter Yukon real estate report shows a slight drop in the prices of houses and condos in the first three months of this year.
The first-quarter Yukon real estate report shows a slight drop in the prices of houses and condos in the first three months of this year.
But Marc Perreault, the president of the Yukon Real Estate Association, says the market remains as strong as ever.
The first-quarter report says the average sale price of a single-detached house was $635,000.
That represents a $2,300 or 0.4 per cent decrease compared to single-detached sales in the first quarter of 2022.
Excluding country residential property sales, the average price of single detached houses was $616,000, representing a decrease of $10,200 or 1.6 per cent compared to the first quarter last year.
There were 34 sales, including country residential, of single-detached homes in the first quarter, representing a drop of 20 sales compared to the first quarter of 2022.
There were three semi-detached house sales in the first quarter compared to seven in the first quarter of 2022.
The average sale price was $456,700, a drop of $14,900, or 3.2 per cent from the first quarter of 2022.
The real estate report says 24 row houses were sold in the first quarter compared to 31 in the first quarter of 2022.
The average sale price was $450,500, representing an increase of $37,000 or 8.9 per cent compared to the average sale price of $413,500 in the first quarter of 2022.
There were 49 condominium apartment sales compared to 18 in the first quarter of 2022.
The average sale price was $403,800, representing a decrease of $27,000 or 6.3 per cent from the average first quarter sale price of $430,800 last year.
In an interview last month, Perreault described the real estate market in Whitehorse as a complicated market.
Higher interest rates are having an influence, particularly for home owners who might not be able to afford higher interest rates as their mortgage renewals come due, he explained.
(Next Wednesday, the Bank of Canada will announce whether it will hold or again raise the central bank rate.)
At the other end of the spectrum, Perreault said, realtors are seeing an increase in the number of listings that exceed $1 million.
Prices, he said, are influenced by various factors, including the availability of larger lots that are not available in the Whistle Bend development.
There are homeowners who want the larger lots with a backyard so they can store their recreational vehicles and such, he explained.
Perreault said prices are influenced by things like transportation costs and labour.
“We are definitely seeing a reduction in sales and listings, but we are not seeing a reduction in pricing.”
The association president said the economic conditions in Whitehorse are keeping the market strong.
But as the higher-end homes are rising in value, so too are the prices of dwellings at the lower end of the market, he said.
Perreault said this is after all, a government town supported by the economy generated by governments and their large work forces.
The real estate report shows the total value of real estate transactions in Whitehorse in the first three months of this year was $61.6 million, compared to $70.8 million in the first quarter of 2022.
The value of single-detached homes sold was $21.6 million compared to $34.4 million in the first quarter of 2022.
But the value of condo sales was $19.8 million, up from $7.7 million in the first quarter last year.
There were 49 condos sold, compared to 18 in the first quarter of 2022.
Comments (8)
Up 1 Down 1
BB on Sep 5, 2023 at 6:51 pm
Statistics Canada says consumer inflation was 8.1% from March 2022 to March 2023. That means these houses were bought with dollars that are worth less. 8% plus 2% decrease in price means prices are down 10% in real dollar terms, but purchasers aren't feeling any benefit.
Up 50 Down 1
Stephen on Sep 1, 2023 at 12:50 pm
As long as the Government continues to be the sole provider of land and the housing codes used by the COW continue to become more stringent home prices will continue to rise.
Up 15 Down 13
David on Aug 31, 2023 at 10:40 am
@Mark
You are right that the banks profit margins are not the problem.
Up 48 Down 10
YT on Aug 31, 2023 at 7:55 am
Realtors have been driving up asking prices for years now.
It’s not a “complicated market”.
The high prices are good for the realtors and that’s about it. If you’ve lived here for a while and are now moving outside, well, it’s good for you because you’ll realize the equity, but otherwise, if you sell and buy again, you’re just flipping money.
Up 53 Down 12
Jack on Aug 30, 2023 at 11:11 pm
I'm left wondering why is The Star interviewing biased real-estate agents for this article?
Up 3 Down 50
Mark on Aug 30, 2023 at 4:51 pm
@David
The current interest rate is still low and reasonable, particularly in the context to the recent wage settlements by both the Federal snd Territorial governments. Further, lenders need some profitability.
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David on Aug 30, 2023 at 4:07 pm
"That represents a $2,300 or 0.4 per cent decrease compared to single-detached sales in the first quarter of 2022."
In the first quarter of 2022, the interest rate was 0.5 %.
Today it's 10 times that much. Interest rate today is 5%
The actual price of owning a home has actually increased dramatically.
Source: https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/
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Yukon Home Owner on Aug 30, 2023 at 3:40 pm
Would love to hear how realtors justify keeping their commission rates so high when the value of homes has skyrocketed. Nothing but glorified used car salespeople doing less for more. Wish the federal government would cap realtor fees as a way of helping lower the cost of houses.