Hi, richmond anon.  

My creds: was a Vancouver Island resident for 30 years.  Victoria area, and, between 1994 and 1999, in Parksville/Qualicum, doing biz as for north as Courtenay. Two grown kids and families live in Greater Victoria. Visit frequently. So, what I'm offering is first-hand anecdotal.

First: where in "mid-island"? "Mid-island" might mean Nanaimo, North Nanaimo, Port Alberni, Courteney/Comox or Parksville/Qualicum Beach. There is a WORLD of difference in home value between Port Alberni and, say, Qualicum Beach. There is a LOT of difference in home value between a new seaside townhouse in North Nanaimo (this summer: around $450,000) and a 15-year old rancher in Port Alberni (around $250,000-$300,000) 

Sales in most communities have ALWAYS been brisk.  The island is a terrific place to live. Parksville has ALWAYS been more expensive than many Nanaimo locations. It's all relative.  Mid-island retirement lifestyle for $500,000? A bargain, for many people elsewhere.