This four-bedroom, two-bath house in Falmouth sold in July for $995,000. Image courtesy of Zillow.

The Cape Cod real estate market continues to outperform many other sectors of the Cape’s economy; however, a dwindling lack of homes for sale threaten to set it back in the coming months.

More than 60 percent of the homes that came on the market in July were under contract by Aug. 10, the Cape Cod & Islands Association of Realtors said in a statement. Market activity that picked up dramatically in May and June ended with July having record numbers for real estate closings.

“We continue to see tremendous interest in Cape Cod as a place of respite and refuge,” association CEO Ryan Castle said in a statement. “We know the housing market can stimulate all other aspects of the economy and look towards that happening here. However, this recovery could be muted if inventory continues to dwindle with less and less homes to buy with each passing month.”

At the end of July, there were 1,128 single-family homes for sale and 372 condominiums for sale in the Cape Cod & Islands Multiple Listing Service. Last July, there were 2,043 single-family homes and 539 condos listed for sale, a 45 percent decrease, and a 31 percent decrease, respectively.

The number of single-family homes sold in Barnstable County in July jumped from 362 last year to 605 this year, a 40 percent increase, according to The Warren Group, publisher of Banker & Tradesman. The median price rose 13 percent to $475,000.

Condo sales rose 13 percent and the condo median sale price rose 23 percent to $325,000. On Nantucket, single-family home sales rose 14 percent and the median sale price also rose 14 percent, to $1.23 million.