Vancouver Island Real Estate Market Update: What 2025 Means for Buyers & Sellers in Nanaimo

As we head into 2026, the Vancouver Island Real Estate Board (VIREB) has released its year-end market overview — and the results paint a picture of a steady, balanced market with pockets of opportunity, especially here in Nanaimo.

Let’s break down what this means for you.

📊 2025 at a Glance

Across Vancouver Island, 7,125 residential properties sold in 2025, representing a 1.7% increase over 2024, with $5.5 billion in total sales volume (up 4.3% year over year). Inventory remained healthy, sitting at 5.9 months as of December, keeping conditions firmly in balanced-market territory

VIREB Q4 2025 Market Overview

While sales activity was modest, the market showed resilience despite economic uncertainty and Vancouver Island’s first population decline in over 20 years.

Key takeaways:

• Sales rose for the second consecutive year

• New listings dipped slightly (down 1.7%)

• Benchmark prices increased just 1.0% year over year

• Prices remain about 7.4% below their 2022 peak, offering buyers breathing room

In short: no runaway price growth — just steady, realistic conditions.

🏡 Nanaimo Market Snapshot

Nanaimo continues to be one of Vancouver Island’s most active markets.

Here’s how 2025 finished locally:

• 1,074 single-family home sales

• Benchmark single-family price: $794,700

• Townhouse benchmark: $512,000

• Apartment benchmark: $424,600

Notably, apartment prices in Nanaimo increased 6.9%, while detached home prices softened slightly year over year — creating opportunities for both first-time buyers and move-up buyers alike

VIREB Q4 2025 Market Overview

📉 Interest Rates & Buyer Confidence

After aggressive rate cuts in 2025, the Bank of Canada held its overnight rate at 2.25% in December and is expected to maintain that level through much of 2026. This brings welcome stability for mortgage holders, though economists don’t anticipate major rate drops ahead

VIREB Q4 2025 Market Overview

What does that mean?

✔ Predictable borrowing costs
✔ Buyers taking a more thoughtful, cautious approach
✔ Fewer bidding wars — more room to negotiate

🔮 Looking Ahead to 2026

While population growth is expected to remain soft for the next couple of years, Vancouver Island continues to attract retirees and lifestyle buyers — a group that typically brings strong purchasing power.

Construction activity is slowing due to rising costs and uncertainty, which may put gradual upward pressure on prices over time. For now, however, affordability on the Island remains strong compared to many BC markets.

VIREB expects market activity to remain steady in early 2026, supported by lifestyle migration and balanced supply levels

VIREB Q4 2025 Market Overview

💬 Our Take as Nanaimo Realtors

For buyers:
This is one of the healthiest markets we’ve seen in years. You have choices, negotiating power, and stable pricing.

For sellers:
Well-priced homes are still moving — especially those that show well and are marketed professionally. Strategy matters more than ever.

Whether you’re buying your first home, upsizing, downsizing, or investing, the current market rewards informed decisions.

Thinking about buying or selling in Nanaimo? Reach out anytime for personalized advice. 

👉 Visit us at https://islandhomes4you.com
📞 Or call/text anytime: 250-240-3222/778-837-1144

Tina Gonzalez & Tim Webb
T&T Real Estate Team – Island Homes 4 You