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Despite worries over subprime mortgages and lenders tightening loan standards, phones are ringing again for local real estate sellers - a marked change from the early part of the year when sales were in a funk.

Sales of single family homes rose 6 percent in July compared with the same month in 2006, according to the latest report from the Massachusetts Association of Realtors. Median sales prices also increased, while sales of condominiums remained virtually flat.

"It is encouraging to see sales go up in July after four straight months of year-over-year declines," said MAR President Doug Azarian, broker/owner of Century21 Dream Homes in Falmouth. "While the tighter lending standards may have taken some buyers out of the market over the past several months, it appears that those who have good credit and some equity, are getting the financing they need and are buying again."

Azarian said that because of the normal time lag between contracting to purchase a home and the legal closing, the latest crop of sales probably reflects an uptick in sales during the May-June timeframe. Local real estate brokers said the MAR figures coincide with a noticeable increase in interest from prospective buyers.

Although the organization does not produce local sales reports on a month-to-month basis, Azarian said the hottest region for sales in July was the Boston area, with western Massachusetts receiving somewhat less interest. Southeastern Massachusetts and Cape Cod were "somewhere in the middle of the pack," Azarian said. Local Realtors said they were not surprised by the news.

"There's been an increase in the number of phone calls and visits to our office," said Monica Grzelak, a Realtor with Bob Cassidy Real Estate in Attleboro. Although the news recently has been full of stories about foreclosures and woes for subprime mortgage lenders and their customers, Grzelak said well-qualified buyers aren't hesitating to buy.

"Serious buyers are able to get loans," she said, adding that the crucial factor in bringing buyers and sellers together is realistic pricing. "If you price a property accordingly, it will sell."

Ed Pariseau Jr. of Ed Pariseau Real Estate in North Attleboro said the increase in sales parallels a pickup in sales locally this spring and added business is continuing to improve over 2006. He said fears that tighter mortgage requirements may make loans harder to get are overblown.

"There are plenty of mortgages available for qualified buyers," said Pariseau. With mortgage rates still at comparatively low levels, prospective purchasers are finding 2007 a good time to buy.

A total of 4,363 detached single-family homes sold during July compared with 4,116 homes sold the same time last year. This is the first year-over-year increase in sales in July since 2004. On a month-to-month basis, there was a 12 percent decrease compared to the 4,959 homes sold this past June. However a falloff in sales often follows the spring selling season.

The median selling price for single-family homes in July was $365,775, an increase of 1.3 percent compared to $361,250 in July 2006. On a month-to-month basis, the July median selling price is up 0.5 percent compared to June. The July 2007 median selling price is the highest it has been since June 2006, and is the fifth highest since 2002. The inventory of available single-family homes also fell to 8.6 months of supply compared with 10.3 months a year ago.