It’s time to prepare for the rites of spring, and hopefully the rebirth of the Chicago housing market in 2010.

This year home and condo buyers truly may have an advantage when it comes to locking in affordable prices and rock-bottom home-loan rates while they tour a huge inventory of available properties, consumer experts say.

Downtown developers are wheeling and dealing on prices, with reductions ranging from 10 percent to 35 percent in the new-construction condominium and townhome market.

“There is a sense of urgency to buy now since the first-time buyer tax credit will expire in the spring,” said Gail Lissner, vice president of Appraisal Research Counselors, Ltd. To take advantage of the $8,000 first-time buyer tax credit homes and condos need to be under contract by April 30 and close by June 30.

“For first-time buyers who are employed and feel confident about their jobs, these are very attractive market conditions,” Lissner said.

Buyers also are being tempted with affordable home-loan rates, lenders say.

“Mortgage rates on benchmark 30-year fixed-rate loans inched upward to 5.05 percent at the end of February after hitting an all-time low of 4.71 percent in early December,” Freddie Mac’s Primary Mortgage Market Survey says.

With home and condo-loan limits of $410,000, Federal Housing Administration-insured financing programs are playing a major role in Chicago’s downtown condominium sales revival this year, observers say.

“Many home and condo buyers are taking advantage of the low 3.5 percent down payment on FHA loans,” said Perry Farella, a loan officer with Wintrust Mortgage in Chicago. FHA borrowers must be an owner occupant and have a minimum credit score of 620.

“The Department of Housing and Urban Development recently streamlined the FHA-loan process to help buyers purchase homes and condos to assist in reviving the housing market during the recession,” said Farella.

“Low rates coupled with the first-time home-buyer tax credit helped boost home sales in the fourth quarter of 2009 to their highest seasonally adjusted level in 2.5 years,” reported Frank Nothaft, Freddie Mac vice president and chief economist.

The Illinois Association of Realtors reported that the median price of existing single-family homes and condominiums in January rose to $145,300, up 0.2 percent from $145,000 in January of 2009. A total of 5,483 homes were sold statewide in January, up 14 percent from 4,809 homes sold in the same month a year ago.

“We are seeing an accelerated spring market despite the snow and cold in Illinois with the home-buyer tax credit the driving factor for rising home sales,” said Mike Onorato, president of the IAR.

In Chicago, existing single-family home and condominium sales skyrocketed a whopping 31.1 percent to 1,202 sales compared to only 917 homes sold in January of 2009. However, the median price slipped 4.9 percent to $195,000 in January, down from $205,000 in January of 2009.

“While the greatest hurdle is still securing financing, the current market has tremendous opportunities for home buyers,” said Genie Birch, president of the Chicago Association of Realtors. “This is a great time to buy a home.”