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Lack of supply dictating Nanaimo real estate market: VIREB

Jan 5, 2018 | 5:41 PM

NANAIMO — A supply shortage combined with increased demand continues to push up residential housing prices in Nanaimo.

New data from the Vancouver Island Real Estate Board (VIREB) showed a little more than 1,600 homes sold in the Nanaimo area last year, down 5 per cent from 2016. The average sale price in the harbour city last year was $518,000, up 16 per cent from $447,000 in 2016.

“As soon as you have more people looking for fewer homes prices are bound to go up, I think that’s what we’re seeing,” VIREB past president and Nanaimo realtor Janice Stormar said.

Nanaimo’s benchmark home price last month was $500,500. The term “benchmark” refers to the average sale price of a typical three bedroom, two bathroom home, providing a more accurate reading of Nanaimo home prices.

A typical winter slump in sales wasn’t the case in December, as VIREB reported 667 homes changing hands from the Cowichan Valley north.

Stromar predicted further tightened mortgage rules enticed buyers to get into the market before potential hurdles took effect on Jan. 1.

“The new mortgage stress test came out in January and I think there was some increased demand in December from the usual December demand because of that factor.”

Stromar called for another hot real estate year in the Nanaimo area, but didn’t think price increases would be as sharp as in 2016.

 

ian@nanaimonewsnow.com

On Twitter: @reporterholmes