Low inventory, high demand driving Nanaimo home prices up
hose looking to buy a home in Nanaimo are running into major roadblocks as builders say they can’t keep up with surging housing demand.
Builders say they’re struggling to drill fast enough to keep up with the demand, with permits for single-family dwellings up roughly 30 per cent in the past four years, compared to the four years prior.
“We’re booking some projects out into October, November at this point in time,” said contractor Byron Gallant, a past president of Canadian Home Builders Association’s Vancouver Island chapter.
He said the backlog is affecting all contractors, sub-trades and suppliers.
“We’re all feeling that challenge,” said Gallant. “We’re finding we have to certainly be on top of scheduling. Some projects, we’re seeing one or two-month delays.”
That has created a seller’s market in the Harbour City as demand far exceeds supply.
According to the Vancouver Island Real Estate Board, inventory for single-family homes Vancouver Island-wide dropped 28 per cent in May compared to the same month last year.
That’s driving prices up in Nanaimo, long seen as a cheaper alternative to places like Vancouver and Victoria.
VIREB reports the average Nanaimo single-family home has jumped to $470,000, a 21 per cent increase from last spring.
“Most houses are still going in multiple offers if they’re reasonably priced and within one or two days of being listed,” said VIREB President Janice Stromar.
She says patience and a lot of persistence are just some of the tricks to finding a home.
“Get all your ducks in a row at the beginning, make sure you have a pre-approval letter from your mortgage broker,” she said.
While there’s no certainty as to which way the market will go, realtors predict that prices will continue to go up unless the lack of inventory is addressed.
Reposted from CTV