The London area real estate market is showing more signs of a spring rebound, racking up the third best sales total for May.

The London and St. Thomas Association of Realtors (LSTAR) said 1,171 homes were sold in May.

That was down 24.4 per cent over the same month last year, but May 2017 set the record for the most homes sold in any month since LSTAR started tracking sales in 1978.

After smashing the annual sales record in 2017, the London-St. Thomas real estate market slowed down over the winter months.

Realtors said there were still plenty of eager buyers, but the market was hampered by a lack of listings.

May continued the stronger sales that began in April.

“The homes sold in May are actually above the 10-year average, despite the ongoing challenge of low inventory in the marketplace,” said LSTAR president Jeff Nethercott.

Nethercott said this year’s numbers are better than they appear because it is hard to match the hot streak in early 2017 when monthly sales records tumbled six months in a row, partly fuelled by an influx of buyers from the Toronto area.

Nethercott said the tight market is continuing to push up prices.

“The big trend we continue to see in the marketplace is low inventory, which remains at its lowest level in 10 years,” Nethercott said.

In May, there were 1,643 active listings, down 7.7 per cent from this time last year and down 44.6 per cent from May 2016.

The sales-to-new listings ratio in London-St. Thomas is now 70.8 per cent. The Canadian Real Estate Association considers any ratio above 60 per cent to be a seller’s market.

LONDON AREA REAL ESTATE IN MAY

(May 2017 in brackets)

Overall sales: 1,171 (1,549)

Overall average price: $366,096 ($342,666)

London South: $370,851

London North: $451,556

London East: $291,469

St. Thomas: $288,902

YEAR TO DATE (January-May) (2017)

Total sales: 3,983 (5,351)