Reading the real estate stats for our community and wondering the effect.
Last year at this time the average selling price for a single-family home in Nanaimo, on Vancouver Island, was $356,000. Today that figure is $444,000 and there are bidding wars due to low inventory of homes!
The construction industry is booming; apartments, condos, and houses are popping up everywhere. There is infilling taking place on lots that have been vacant for years. The population density is increasing in the downtown core which bodes well for the businesses located there. Restaurants are busy, even during the week.
Employment is up in the construction sector, which supports apprentices, and allows the local construction people the ability to stay home with their families rather than travelling far afield for work. The trickle-down effect is the circulation of more money in the community supporting all of the businesses.
All of this increases the opportunity for investment in the community. We are seeing increased employment and new business ventures. The technology sector is growing. We have an influx of families relocating here bringing with them new skills and expertise. Many are from the lower mainland as a result of the high real estate costs there or the desire for a more relaxed lifestyle. A Vancouverite has the opportunity to sell their home there, buy a better home here, and have $500,000 in the bank! Many of these new residents retain their employment in Vancouver, work from home, and commute when necessary.
But what about young families, first home buyers? With the rising prices, what are the prospects of them owning a home? Their down payment required has increased by $10 – 25,000 in the past year. The government assistance plan will help until it has to be paid back and we do not have a crystal ball as to the state of the economy at that time.
Where is it all going? All I know is that there are spurts and lulls in the economy and we simply have to accept them and ride them out, hopefully learning as we go. Like everything in life, not all is positive, but we must build on what is and not dwell too long on what isn’t.
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