Metro Vancouver

There's a good chance he or she is from Vancouver Island and it's highly likely he or she is in Nanaimo already.

B.C. residents remain the single-largest group of buyers of Nanaimo real estate, according to the third annual real estate buyer profile report from the Vancouver Island Real Estate Board.

The Island-wide voluntary buyer survey got 587 responses from Nanaimo home buyers. The data they provided suggests that 38% of all residential buyers come from Nanaimo. Fourteen per cent come from elsewhere on Vancouver Island and all of B.C. accounted for 74% of all home buyers who took the time to complete and return the survey.

But the report also shows a continuation of a trend seen all over the Island in recent years - an increase in the number of retirees moving to Nanaimo, many from Alberta.

Alberta buyers made up 13.5% of the market in Nanaimo last year, a big jump from 2006 when only 9% of buyers hailed from Wild Rose Country. Albertans made up 11% of the total in 2005.

Those buying for retirement made up 30% of all buyers in Nanaimo last year, less than the Island rate (35%), but a two-point jump from the previous two years, when it hovered at 28%.

That's seen good news for the Island, since retirees come here with hefty bank balances and help make the Island economy one of the strongest in Canada.

"Retirees really are a tremendous boost to the local economy," said Cameron Muir, chief economist for the B.C. Real Estate Association. "Retirees living day-to-day are not only paying taxes, they also support high-value occupations such as doctors, medical professions, lawyers, financial institutions and home maintenance (firms). All those help carry the community through the ups and downs of the business cycle."

Housing sales are considered a good economic barometer. The industry is a major driver of the economy, and retirement is a major driver of housing sales on Vancouver Island.

"Affordability is a big factor," Muir said. So is Nanaimo's favourable climate, its central location and its growing list of amenities for people wanting to relocate here.

The Vancouver Island market usually follows the lead of the Lower Mainland and with prices leveling off and even dropping in some areas, Muir said sellers can expect a similar pattern here.

Looking ahead, Muir said the economic indicators are good for the Island and B.C., with the exception of consumer confidence. Confidence has taken a hit amid the barrage of media coverage of the U.S. sub-prime mortgage fiasco.

But Muir said Canada's banking industry is better protected, since borrowers have to qualify for mortgages, and that's reflected in Canada's mortgage failure rate, which remains low.

Muir repeated the mantra realtors have been saying lately: It's now a buyers' market. For sellers, it means sprucing up a home's curb appeal and pricing it right will make a difference how long it sits on the market.

"Buyers are now competing against each other for available buyers," he said. "Having a sharp pencil around pricing a property is more important it was a few years ago."

WHERE BUYERS COME FROM

Nanaimo residents still make up the single largest group of home- buyers in Nanaimo at 38% of the total. Albertans, however, are catching up with Islanders for the second-largest single buying group. But B.C. buyers still made up the greatest share, at 74% of the total, while Islanders made up 57% last year.

THE BREAKDOWN

Within same area 38%

Elsewhere on Island 14%

Alberta 13.5%

Other B.C. 7.7%

Vancouver 6.0%

Ontario 5.1%

Victoria 4.4%

Rest of world 2.7%

Fraser Valley 2.7%

Sask./Manitoba 2.6%

Other Canada 2.2%

Gulf Islands 1.0%

**587 responses

Source: Vancouver Island Real Estate Board

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