The real estate market in Nanaimo
The real estate market overview
The real estate market in Nanaimo has become one of the most expensive in British Columbia, rivaling that of Vancouver and Victoria. Many potential homeowners choose to settle in Nanaimo because of its lovely surroundings and magnificent residential estates.
According to statistics, house sales fell by 13% year on year in February, totaling 360 units. However, residential property sales increased by 64% month over month.
The average selling price of a single-family house in Nanaimo increased by 23% year over year in February, reaching a new high of $944,50. The benchmark price has increased by 32% year on year to $852,800.
The lack of inventory has been a problem in the Nanaimo housing market. New supply increased overall inventory levels, but active residential listings were so low that demand could not be met. As a result, Nanaimo real estate prices are rising.
Is Nanaimo real estate a good investment?
Many investors may find Nanaimo real estate to be an excellent investment. Nanaimo provides a broad range of housing options for families looking to buy a home, people looking to rent a single-family home, and even visitors looking for a short-term rental property to enjoy Nanaimo's beauty. Nanaimo is really everything you might desire in a place to live, work, or visit.
Will rising interest rates affect Nanaimo investors?
Prior to the Bank of Canada (BoC) pulling the trigger on a 25-basis-point rise and raising the benchmark interest rate to 0.5 percent, there was much speculation that tighter monetary policy would drive housing prices to fall. This had nearly been a foregone conclusion.
Many market observers, however, stress that borrowing rates remain exceptionally accommodating and extremely cheap by historical standards. As a result, borrowing and purchasing residential units remains reasonable for investors. Will this be the case if the central bank continues to boost interest rates to help control inflation?
RBC Economics, on the other hand, recently issued a research report titled "A turning point? In February, more sellers joined the Canadian home market."
It emphasized statistics indicating that more sellers were entering the country's hot housing market, providing much-needed supply to a supply-starved sector.