Vancouver real estate prices will keep rising for 2 years, predicts economist

British Columbia homeowners can celebrate the latest predictions about real estate prices but would-be home buyers could face even more pressure.

Central 1 Credit Unionsenior economist Bryan Yu predicts B.C. home prices and sales will continue to rise for the next two years.

He says average prices in the province will leap six per cent this year to $425,000, reaching $462,000 by 2017, with median prices for detached Vancouver-area properties shattering the $1-million mark.

According to Yu, few available homes, Alberta's recession and a weak mining sector will slow but not cap demand in the Interior, while lack of land and relentless demand fuels sales in Greater Vancouver.

Central 1 also predicts low mortgage rates through 2017 will keep sales sizzling.

It says sky high prices and a seller's market reveal the start of a long-term switch as families give up detached homes on pricey land and instead choose 'forever homes' in higher density condos and apartments.