As far as land area, Yukon is the smallest of Canada’s three territories. Yet the mining opportunities and historical significance of the territory continue to attract new residents each year. This growing territory may be a great place in Canada to buy a home. We are the best site for information on Yukon that will help you determine whether or not you should move to the territory. We are also the top place to find the most competitive Yukon mortgage rates. Working with the top lenders in Canada, we can make sure that your information gets in the hands of those who are interested in lending money for a home purchase. All you need to do is choose the best rate and fill out the form, and your information will be sent to a reputable lender in your area. Read on to learn more about the Yukon housing market, and then choose a rate to begin the loan process.
Factors Affecting the Housing Market in Yukon
As in every territory and province of Canada, there are several factors that affect the housing market in Yukon. The following are the most important of these:
• Economy — Yukon continues to struggle with a relatively high unemployment rate, although the economy of the territory is growing. As of March 2012, approximately 8 percent of the population was unemployed. This may continue in the short term, however, growth in the mining industry should help bring the unemployment rate down over time. In 2011, 3 mines were totally operational in the territory, and many more mining claims had been filed. Gold reserves are expected to attract many companies, and other metals will also be key to economic growth in Yukon.
• Population Growth — For the past decade or so, Yukon has experienced slow but steady population growth. This is particularly true in Whitehorse, which is already home to two-thirds of the territory’s citizens. The community enjoyed a 2 percent increase in population in 2010, and such growth is expected to continue. In March 2012, the total population of the territory was just under 36,000 people. This growth has been driven primarily by international immigrants who come to the territory looking for employment and the lowest mortgage rates in Yukon.
The State of the Housing Market in Yukon
The Yukon housing market is difficult to get a handle on because statistics are updated infrequently, but the available information is mainly encouraging. Total residential construction is down in comparison to 2011, as March 2012 had a total of $1.3 million in residential construction projects versus $2.5 million in March 2011. This means that housing starts may see a decline in 2012 from the 240 or so that were predicted for 2011. As it is hard to secure a lot for a single family detached home, most housing starts are in the multiple housing category.
Existing home sales, on the other hand, tell a different story. Homes are continuing to appreciate at a rapid level. In fact, from 2006 to 2011, the average price of a home in Yukon doubled. At the end of 2011, the average home price in Yukon was $455,000, with the average in Whitehorse being $500,000. At the present, interested buyers seem to be outpacing the number of sellers, and the resulting demand is driving the price increase. If they are able to secure a home at low current mortgage rates, Yukon residents stand to benefit from future price appreciation when they need to sell.
In the fourth quarter of 2011, the total number of residential real estate transactions declined, but the increased prices of homes in Yukon means that the total value of said transactions was actually higher than in previous years. Approximately 280 single family homes were sold in 2011, and the total sales of all residential properties reached 602 homes, which matched the predictions of the Canada Mortgage and Housing Corporation.
Yukon, as well as Canada’s other Northern Territories, continues to see an increased demand for rental properties. This is particularly true in Whitehorse, where the average vacancy rate is well under 5 percent. Families and individuals who are looking for an apartment with 3 bedrooms or more are having a particularly rough time. Experts predict that rental demand will far outpace available rental units for the next few years, which will cause the average cost to rent an apartment to increase. Those who are able to buy or build a rental property in Whitehorse, therefore, stand to benefit in the years ahead. Now may be a good time to buy, as mortgage rates in Yukon are currently averaging about 3 percent for variable mortgages and 3–6.5 percent for fixed-rate mortgages. Choose the best rate and fill out the form on this page to get access to the lowest rates in your area.
Where to Buy in Yukon
Yukon is growing, but the territory has only a few population centers, and many of these are declining. Two towns, however, are growing and may be great places to buy a home:
• Whitehorse is certainly the best place to buy a home in Yukon, as it is the economic and cultural center of the territory. People flock to Whitehorse because it is the territorial capital and home to the vast majority of all residential construction projects and sales. There are several subdivisions where you might find a good home, with the newest homes being constructed in Whistle Bend. Buying in Whitehorse is almost always a good idea because of the demand for homes and the rapid price appreciation of real estate that the residents of the city enjoy.
• Dawson is the second-largest community in Yukon in terms of population. Founded during the Klondike Gold Rush, gold mining continues to be important to the economy. The population is growing, albeit very slowly, so one should look carefully at the area before buying a home in Dawson.
Get The Best Yukon Mortgage Rates
Now that you have a better grasp of the Yukon real estate market, it is time to get the most affordable mortgage rates if you want to buy a home in the territory. Choose a mortgage rate on this page or fill out the online mortgage application to speak to a mortgage expert and get the current mortgage rates in Yukon.
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