“Prices continued to record modest gains and sales recovered in December while for the next quarter, sales are forecast to be more variable on a monthly basis although the annual changes are expected to be positive,” says Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory. “Significant employment gains, declines in the unemployment rate and gas prices have all contributed to enhancing consumer expectations that hopefully will turn into more housing sales.”

The city of Chicago saw a 6.8% year-over-year decrease in home sales last month with 1,992 sales, down from 2,137 in December 2013. And the median price rose to $229,250 versus $210,000 in December 2013, an annual increase of 9.2%.

“Our housing market recovery will continue making strides in 2015,” says Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co. “Chicago buyers are willing to navigate tight inventory, motivated by low interest rates that will likely inch upward this year. For Chicago buyers taking advantage of low rates, they are moving quickly and investing strongly in their ideal home. The average homeowner is selling in less than two months, and benefiting from higher median prices.”