Chicago's nine-county metropolitan area also saw a decrease in sales. A total of 5,785 homes, including condominiums, were sold last month, down 8.9% from the previous January. But the median price of a metropolitan area home in January was $164,900, up 17.8% from $140,000 in January 2013. And the time it took to sell a home continued dropping with listings averaging 71 days until sale, an 18.4% decrease compared to the 87 days it took in January 2013.

"January's activity is fairly typical for this time of year," says Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate. "A brutal winter doesn't typically encourage home shopping fever in Chicago, and with inventory down 25%, the Chicago homes that did sell produced well above the median price by almost 28% percent to just over $200,000."

"We might see a burst of selling once spring comes," Hewings says, as a result of demand built up over the cold winter. In general, demand has increased because more people have entered the market for the first time after four or five years of widespread caution.

But the full picture is complex. "Overall, consumers are a little bit more optimistic about the economy," Hewings adds, since possible government shutdowns have been averted, but job growth remains below what could be expected in strong recovery. "Median prices are going to continue increasing," but the torrid pace of sales throughout much of last year, which surpassed the expectations of many, may slow sales a bit this year after that possible burst in the spring.