LONDON, ONT. -- July was a record month for area home sales.

The London and St. Thomas Association of Realtors (LSTAR) reports that 1,275 homes exchanged hands last month.

“This was not only the best July for LSTAR, but also for London, which saw 856 residential real estate transactions, a number that is way above the values typically recorded during this summer month,” says LSTAR President Blair Campbell.

LSTAR says there were 1,408 new listings last month, on par with the 10-year average, but the inventory decreased to 1.1 months which is its lowest value in the last decade.

The sales-to-new listings ratio for the area is 90.6 per cent, a figure that indicates a sellers’ market, Campbell said.

“These leaps in statistical values might sound unbelievable, especially now, in the middle of the COVID-19 pandemic. But they can be explained, if one takes into account the strength of the local real estate market at the beginning of this year and the pent-up demand created during the lockdown months,” he said.

The average home price in the area increased to $484,884 in July, which is 19.6 per cent higher than a year ago.

In June, local home sales saw a rebound following two months of sharp decline.