Sales in the region totalled 1,887, which is 35.2 per cent below the 10-year July sales average.
The board says these figures signal a new market cycle — characterized by lessening demand for homes — is here.
“I think home buyers and sellers are taking a breather after a frenetic two-year period,” said Craig Munn, vice president of communication at REBGV
Munn said buyers’ caution is being driven by increasing interest rates and inflationary concerns.
“Home buyers are wisely taking time to assess what these changes mean for their own personal circumstances.”
The board says that part of the new market cycle includes a gradual rise in the number of homes for sale, but last month’s listings totalled 3,960 homes, down almost 10 per cent from July 2021 and 25 per cent from June 2022.
Meanwhile, the composite benchmark price for the region sat at more than $1.2 million last month, a roughly 10 per cent increase from July 2021 and a two per cent drop from June 2022.
Munn said prices have started to edge down over the last three months, but at a gradual pace of about two per cent per month.
‘A very normal response in the market’
Brendon Ogmundson, chief economist at the B.C. Real Estate Association, said demand is cooling off across the province.
“No matter what market you look at, sales are generally about 20 to 25 per cent below what’s normal for this time of year,” said Ogmundson.
Ogmundson said while prices are slowly declining, a big drop in prices is highly unlikely.
“What we’re seeing is a very normal response in the market to very high interest rates.”