Home sales in Massachusetts soared over year ago levels, increasing 27% in July, according to research firm The Warren Group.

The state recorded 4,979 single-family home sales last month, compared to 3,922 sales a year earlier. The Warren Group declared it the Bay State's best July in seven years when analyzing home sales activity.

In the first seven months of 2012, Massachusetts recorded a total of 26,596 home sales, up 24.8% from 21,319 units a year earlier.

"There are a lot of good signs pointing towards a real estate recovery," said Cory Hopkins, editorial director of The Warren Group. "But, we are comparing sales to a very depressed market last summer, so it's important to step back and realign expectations."

Condo sales also grew in July, rising 34% from year ago levels with 1,994 Massachusetts units sold, compared to 1,487 condos a year ago.

At the same time, prices remained flat, growing less than 1% to $318,000 from $315,000 in 2011.

The overall median sales price for homes sold in the first seven months of 2012 dropped 1.7% to $287,000, compared to $292,000 a year earlier.