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Some encouraging signs in the local real estate market.

The London and St.Thomas Association of Realtors is reporting a 4.5% increase in home sales over June of last year.

A total of 946 homes changed hands last month. The increase in detached homes sales was 6.5% year over year, although condo sales were down 3.2%.

"We are very pleased to see a 4.5% increase in sales," says Joe Hough, LSTAR President. "2008 was a record-breaking year, so it is just outstanding to see a gain for June 2009 over June 2008. Sales may be down year-to-date, but the numbers we are seeing are still very positive."

Despite the 4.5% monthly increase, home sales for the year are still down by more than 11% from levels seen in 2008.

Still, some analysts see reason for optimism.

"Sales activity is now closer to the pre-recession peak than it is to the recent low point reached last January," says Dale Ripplinger, President of The Canadian Real Estate Association (CREA). "Strengthening consumer confidence, low interest rates, and improved affordability are drawing buyers to the housing market across Canada."

Meanwhile, Peter White, the President of the London Economic Development Corporation, thinks an economic turn around the the area may not be far off.

"I don't think we're going to see one big announcement that will help change things, but I think just this continuation of small positives is going to help us build towards a recovery".