Historically low interest rates and discounted housing prices are fuelling a real estate boom on B.C.'s south coast with sales in Vancouver up 75 per cent compared to June of last year.

Strong activity is also being reported in the Fraser Valley to the east of Vancouver — where sales were up 40 per cent over last year — and in Victoria, which saw a 30 per cent increase over last year.

"Many people who were reluctant to purchase a home last fall and earlier this year are returning to the market because they see conditions that appeal to their personal and financial needs," said Scott Russell, president of the Real Estate Board of Greater Vancouver.

"Price reductions and low interest rates have created an improvement in affordability, which is causing the number of sales to rise to levels comparable to 2003 to 2007," he said.

The high sales figures for June match a rising trend in recent months, which in turn, have been slowly driving up prices for homes. But overall, prices in Vancouver are still down about 8.2 per cent compared to June of last year, meaning many buyers are willing to hold out for a bargain, according to Russell.

"The current marketplace is such that buyers are more inclined to walk if they don't like the terms of an offer," said Russell.