Home sales in 91原创 dipped sharply in July compared to June, as higher interest rates and summer doldrums hit a still-wobbly real estate market.

Regionally, 1,368 home sales were recorded in July by the Fraser Valley Real Estate Board (FVREB), which was a significant 29.3 per cent drop below June鈥檚 levels.

However, it was 37.8 per cent higher than July 2022, when the province was in the grip of a very slow real estate market, as the first part of an ongoing cycle of interest rate hikes and higher mortgage rates took effect.

鈥淪ummer is typically a slower period for the real estate sector and the higher interest rates are contributing to the market slowdown,鈥� said Narinder Bains, chair of the FVREB. 鈥淲e鈥檙e seeing less traffic and fewer multiple offers as buyers and sellers put a pause on decisions and we expect this trend to continue until the fall cycle.鈥�

After holding interest rates steady in March and April, the Bank of Canada resumed raising rates on June 7, bumping the overnight lending rate from 4.5 to 4.75 per cent, and then to 5.0 per cent on July 12.

With interest rates and bond prices heading upward, mortgage rates quickly followed.

In 91原创, sales of single family homes were down 48.5 per cent month-over-month.

July saw 84 detached homes change hands, compared to 163 in June. July鈥檚 numbers were still 42.4 per cent higher than the 59 houses that sold in July 2022.

In townhouses, 84 sales were recorded in July, down 21.5 per cent month-over-month, but up 37.7 per cent from the same month a year ago.

The biggest selling type of housing was condos, with 106 changing hands, down 20.3 per cent from June, and up 16.5 per cent from the same month last year.

While prices have been rising again this year after slumping through the latter half of 2022, the benchmark price for all three housing categories remains slightly lower than it was a year ago.

The benchmark price for a detached home in 91原创 was $1.63 million in July, 5.4 per cent below the level of July 2022, while townhouses were going for $848,300, down 7.7 per cent, and condos were selling for $612,900, down 1.4 per cent.

According to 91原创-area realtor Jennifer Clancey, people who have been approved for a mortgage and have locked in their rates are still shopping 鈥� people can lock in their rates after approval for a month to up to four months in some cases.

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When those folks have all bought their next home, Clancey expects a further slowdown in the fall.

Interest rates remain a key factor.

鈥淚t completely changes their price bracket, what they can get,鈥� Clancey noted.

While things are still relatively busy now, some people are still reluctant to sell, and while there are more homes for sale than last year, more supply is still needed, she said.

Active listings across the entire FVREB region 鈥� North Delta through to Mission and Abbotsford 鈥� rose to over 6,000 homes of all types last month, but that鈥檚 well below levels that were typical a decade ago, when there were usually between 8,000 and 10,000 homes for sale at any given time.

One group that is selling is real estate investors, some of whom are now 鈥渓osing their shirts鈥� because they bought at variable mortgage rates, which have skyrocketed over the past year, said Clancey.

The other group that鈥檚 moving is those who have to relocate for various reasons, she added.