Buyer Optimism Holds Strong as Market Finds Its Balance in May
Despite a backdrop of economic uncertainty, Nanaimo’s real estate market in May delivered a reassuring message: buyers are still confident, and the market is leaning into balance.
According to the Vancouver Island Real Estate Board (VIREB), total unit sales across all property types came in at 781, down just three per cent from May 2024. While this slight dip might hint at hesitation, the bigger picture tells a story of stability, especially when it comes to single-family homes.
“Buyers are more informed and intentional right now,” says Derek Gillette of Gillette & Associates. “They’re watching the economic headlines, yes — but they’re also seeing more choice and less urgency, which gives them breathing room. It’s a healthy kind of market.”
Nanaimo Market
In Nanaimo, 409 single-family homes sold in May — a 1% increase year over year, and up slightly from April.
While condo sales dropped 19% year over year (74 units sold), and townhouse sales declined 20% (86 units), inventory levels tell a more nuanced story.
There were 1,565 single-family homes for sale in the VIREB region last month, up from 1,433 one year earlier. Condos held steady with 399 active listings, and townhouse inventory dipped to 346 units from 375.
“For the first time in a while, we’re seeing active inventory levels that are above the 10-year average,” explains Gillette. “That’s significant. It means buyers can afford to take a bit more time, and sellers need to be strategic.”
The benchmark price of a single-family home in Nanaimo rose to $841,900, a 3% increase year over year, continuing a trend of modest but steady appreciation.
Vancouver Island Market
Across the Island, benchmark prices were generally on the rise:
* Comox Valley led the way with a 7% increase, hitting \$887,600
* Parksville-Qualicum remained the highest-priced sub-region at \$920,500 (up 3%)
* Campbell River rose 1% to \$722,700
* Cowichan Valley climbed 4% to \$806,800
* Port Alberni edged up to \$518,300
* North Island surprised with a 12% jump to \$477,200
While condo prices saw a 2% year-over-year decline Island-wide, townhouses held their ground with a 3% annual gain, now benchmarked at \$561,700.
“Each micro-market on the Island has its own story,” Gillette adds. “Port Alberni and the North Island are catching investor attention. Parksville remains a premium downsizer destination, and the Comox Valley is seeing the strongest appreciation, likely driven by lifestyle demand.”
**National Trends: Moderation, Not Meltdown**
The Canadian GDP expanded by 2.2% on a seasonally adjusted, annualized rate in the first quarter of 2025, picking up from the revised 2.1% rate in the previous period to beat market expectations of 1.7% expansion.
Nation Wide Market
Nationally, VIREB’s outlook aligns with CREA’s assessment that Canada is in a balanced market in most regions. Sales are trending sideways, and interest rate watchers are still keeping a close eye on Bank of Canada policy — with economists anticipating a potential rate cut in the coming months, depending on inflation data.
Inventory levels are improving nationwide, but affordability remains a concern in major urban centres. “In contrast, Vancouver Island markets are benefiting from more manageable prices and a lifestyle appeal that continues to draw migration from both the mainland and out of province,” Gillette notes.
What This Means for Buyers and Sellers
For buyers:
You’ve got options. Inventory is up, pressure is down, and pricing remains stable. There’s room to negotiate — especially in the condo and townhouse sectors.
For sellers:
Strategic pricing and standout marketing are more important than ever. Homes that are well-presented and well-priced are still selling — but the days of multiple offers on day one are less common unless the home truly shines.
Summary
* Nanaimo’s benchmark single-family home price: $841,900 (+3% YoY)
* Island-wide market remains balanced with just under 6 months of inventory
* Single-family home sales up slightly year over year
* Condo and townhouse sales softening, but prices holding for townhomes
* Inventory levels are healthy, giving buyers more choice
* Migration and lifestyle demand continue to support Island pricing
* Watch for interest rate decisions from the Bank of Canada as a key summer driver
2 weeks we will review National sales trends.
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