More 'for sale' signs are in and around Nanaimo over recent months, thanks in large part to buyers awaiting an interest rate cut which finally came this week. (Alex Rawnsley/NanaimoNewsNOW)

By Alex Rawnsley

buyers market

Interest rate cut hoped to help ‘pent up demand’ for Nanaimo homebuyers

Jun 6, 2024 | 5:25 AM

NANAIMO — A long-awaited interest rate movement from the Bank of Canada is eyed as a potential catalyst for a local real estate market uptick.

The Vancouver Island Real Estate Board (VIREB) reported a quiet May with low sales volumes as buyers awaited word of a potential rate cut, which came in the form of a 0.25 per cent reduction on Wednesday, June 5.

VIREB CEO Jason Yochim said low sales volumes combined with an impressive 1,804 new listings added in May meant the number of active listings are nearing levels not seen since spring 2020.

“With the higher interest rates in the past and these increases in new listings, our active listing count in May of this year was 4,242 active listings across the board area. We have to go back to May 2020 to see a similar number to that.”

Despite the added volume not seen in a while, the overall market is still a shadow of what it was in May 2014 when almost 9,000 active listings were available.

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Just over 400 homes sold in May, down from the same month last year but up marginally from April of this year.

Smaller units continued to be popular, with condos and townhouses remaining the biggest sellers, something which Yochim attributes to a more attractive price point compared to a single-family detached home.

The rate cut from the Bank of Canada is seen as “a good start” for Yochim.

“I think once we see another movement of a quarter point or two, I think we’re going to see some noticeable increase in activity. I think there’s enough pent-up demand out there and a lot of the buyers are just waiting to see which way those interest rates are going in the to make their move.”

Pricing in the region continues to remain high, with Nanaimo’s benchmark price of a single-family home up four per cent year over year to $815,900.

Parksville-Qualicum’s sits at $896,400, an increase of two per cent from May 2023.

— with files from Jon de Roo, 97.3 The Eagle

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by Alex Rawnsley

Interest rate cut hoped to help ‘pent up demand’ for Nanaimo homebuyers

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