VANCOUVER (NEWS1130) – BC home sales and prices will rise through 2014, according to a forecast from an industry group.

The BC Real Estate Association had been predicting no price gain this year, but now expects an increase of 3.3 per cent to an average of $532,000. It forecasts prices to rise 2.2 per cent next year to $543,000.

Its chief economist, Cameron Muir, cites a “stronger than expected decline in the inventory of homes for sale” in the Lower Mainland.

The BCREA also predicts a rebound in sales of 3.9 per cent to 70,300 this year before gaining 6.1 per cent next year to 74,600.

Muir cautions “the effect of sluggish employment growth this year is expected to spill over into 2014, limiting housing demand” to the five-year average.