The median price within the city of Chicago fell 4.9 percent to $195,000 last month, as 1,202 homes were sold, a 31.1 percent increase from a year ago and the fifth consecutive month of improved sales in the city. Sales of condos within the city rose 38.2 percent from a year ago, to 655 units sold. The median price of $279,900 was a 9.4 percent drop from a year ago.

Among Chicago-area counties, sales rose 35.8 percent in Cook; 25.3 percent in Du Page; 43.3 percent in Kane; 41.1 percent in Kendall; 18.4 percent in Lake; 28.8 in McHenry; and 5.4 percent in Will County.

Statewide, total home sales were up 14 percent in January and the median price of $145,300 was a 0.2 percent gain over January 2009's median price. It is the first time since September 2007 that the statewide median home price posted an increase, albeit a very small one

Geoffrey Hewings, director of the University of Illinois' regional economics applications laboratory, said he expects median price increases across the state to moderate during the next three months, while the median price in Chicago will continue to be about 6 percent below comparable year-ago prices.

Sales should continue to improve through April, he said, rising at least 18 percent in Chicago.