Cameron Muir, BCREA Chief Economist, states that retail sales growth in the double digits reflects high levels of consumer confidence, which is spilling over into real estate. Tourism on Vancouver Island also posted a huge spike recently, which aids local economic conditions. However, although housing demand is extraordinarily high, its foundation is solidly based on a healthy GDP and rising population growth.
“British Columbia’s GDP is at three per cent, and employment growth rose around 3.5 per cent in the first four months of 2016,” says Muir. “Real estate is benefiting from that growth, with sales in the entire southern half of the province at record or near-record levels.
In Nanaimo the benchmark price rose 10.82 per cent to $389,800 with the most active area at 21.7% in North Nanaimo
Although retirees frequently choose to migrate to Vancouver Island, we are seeing younger professionals trading in their homes on the Lower Mainland for a significantly nicer property here.
Vancouver plans to impose tax on owners of vacant homes we don’t see that as much of an issue in Nanaimo but something that is worth watching.
See the detailed report here 05-May 16 Nanaimo Graphstats.pdf
