In the wake of the city's land crunch, affordable home prices in the city are beginning to rocket.

Mike Racz, the president of the Yukon Real Estate Association, said Thursday Whitehorse realtors are beginning to notice a spike in what have traditionally been lower-end starter homes.

'The price of mobile homes is going up,' he said in an interview.

'We have noticed the purchasers of mobile homes are willing to pay a higher price for a home.'

Racz said in the first six months of 2007, there were nine mobile home sales with an average price of about $160,000.

From January 2006 to June 2006, he added, there were six sales which averaged $130,000.

'We've seen a $30,000-rise in the last year.

'There's nothing there to stop that from going up,' he said.

With no new lots on the market, he explained, buyers were restricted to current housing stock.

Some mobile homes currently on the market are listed between $180,000 and $200,000.

Racz said with rising interest rates and housing prices, he's seen a number of potential home buyers begin looking at lower-end homes, which may be responsible for driving up prices.

More buyers in the lower-end market, he said, are starting to lead to bidding wars.

'A lot of the time, it's the purchasers that keep pushing the price up.'

According to the Yukon Bureau of Statistics, housing prices have risen more than 70 per cent since 2000.

The average price of a single-family home in the city, according to the bureau, is $251,800.

The average price for country residential homes has ranged between $270,000 and $310,000 over the last year.

Racz said he'd like to see development in the Arkell greenbelt start as soon as possible to bring more affordable houses on the market.

Mayor Bev Buckway said Thursday council also wants to bring the Arkell lots online, but she isn't sure when they can do that.

'There's not a specific timeline. We'd like to get that moving, but within the restraints of what else we have on the go.'

The city is currently working with Takhini North residents to develop a green area in their subdivision.

City officials are also working on the lower Porter Creek bench plan, known as Whistle Bend, which may see lots in 2009 or 2010.