May was a very strong month of real estate for the city of Chicago, with both home sales and home prices posting great gains.

Home sales in the nine-county Chicago Primary Metropolitan Statistical Area rose 29.3 percent in May year-over-year to nearly 11,000 transactions, according to the latest analysis by the Illinois Association of Realtors.

Median price for the Chicago PMSA also rose by 8.2 percent from May 2012, and median time on the market fell 25 percent year-over-year, dropping from 92 days in May 2012 to 69 days last month.

Things Looking Up for Chicagoland Real Estate?

Chicago, beleaguered by the foreclosure crisis, has limped somewhat towards a housing recovery, but May arguably represents its most solid month yet in the post-boom housing market. Other important stats from IAR report included:

• For the city of Chicago, home sales rose 30 percent from May 2012 to 2,762 sales.
• Similarly, median price for the city jumped 17 percent, rising from $200,000 in May 2012 to $234,000 in May 2013; Chicago condo prices saw a 10.8 percent price increase to $274,000, and Cook County prices rose 9.4 percent to $185,000.
• Finally, as with the Chicagoland area, time on market showed considerable improvement in the city, falling 32.1 percent in May to 53 days.

Zeke Morris – “Excitement is Growing”

But still, even with IAR’s report featuring double-digit numbers galore, Zeke Morris, the Chicago Association of Realtors’ 2013 president, stressed caution in his comments.

“May market data continues to affirm that we are on the right track, and excitement is growing within the real estate industry,” Morris said. “Recovery is uneven citywide, however. We still have concerns about some underperforming areas in Chicago. Homeowners considering selling their homes should assess if today’s market is right for them.”

The real estate market for the state of Illinois was also positive in May, with home sales rising 24.4 percent year-over-year and median price rising 6.9 percent. That’s the strongest yearly increase for May sales since 2006, and Michael D. Oldenettel, IAR’s president, said such trends bode well for Illinois.

“Buyers are still quite bullish when it comes to the housing market and the increase in median home prices reflects that strong demand” Oldenettel said. “The fact that sales are approaching pre-recession levels is a positive sign that the market has rebounded.”