Homeowners can celebrate the latest news from the Central 1 Credit Union, but would-be home buyers could face even more pressure – and not just in Vancouver.
Central 1 senior economist Bryan Yu predicts B.C. home prices and sales will continue to rise for the next two years, with the BC Interior playing an important role.
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.
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.
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