The Chicago area’s bruised and battered housing market is beginning to inch its way off life support and may soon move to the recovery room.

According to the Illinois Association of Realtors (IAR) latest report, 7,187 single-family home and condominiums were sold in August in the nine-county Chicago area. That’s a 27.6 percent gain from August of 2010 when 5,632 units were sold.

However, home prices continue to slide. The median price in August was $176,500 in the nine-county Chicago-area, down 10.4 percent from August of 2010 when the median price was $197,000. The median is a typical market price where half the homes sold for more, half sold for less.

Home and condo sales in Chicago, totaled 1,787 units in August, up 20.3 percent from the 1,486 units sold in August of 2010. The median sale price for single-family homes and condominiums in August was $192,500, down 3.8 percent compared to August of 2010 when it was $200,000.

“August sales prices in the city of Chicago continued to show positive signs for condo and single-family homes,” said Mabel Guzman, president of the Chicago Association of Realtors.

Condo unit sales rose 22.1 percent over sales from August of 2010, while home sales increased 17.8 percent. “We are seeing increased activity and more purchasers making decisions to buy in a competitive market with historically low interest rates and compelling pricing,” Guzman said.

Statewide home and condo sales were 10,622 units sold, up 25.9 percent from 8,434 home sales in August of 2010. The statewide median price in August was $149,000, down 5.4 percent from $157,500 in August 2010.

“A strong buyer’s market continues in Illinois with record low mortgage interest rates and lower home prices although job worries and overall economic uncertainty are holding many back,” said Sheryl Grider Whitehurst, president of the IAR.

Freddie Mac reported that benchmark 30-year fixed rate mortgages were at a record-low 4.09 percent on September 22 and several Chicago-area lenders were quoting rates under 4 percent. Last year at this time, the 30-year fixed loan averaged 4.37 percent.

“In some local markets prices are firming as homes are selling due to high affordability conditions and pent-up demand,” said Grider Whitehurst. She noted that 8.5 percent more homes sold statewide in August compared to the previous month of July.

However, the job market needs to improve before a real housing recovery happens, experts say.

“The Illinois unemployment rate has increased four months in a row after 15 consecutive months of declines,” noted Dr. Geoffrey J.D. Hewings, a University of Illinois economist.

A housing recovery has been slowed because of a lack of appropriate response from the federal government to the deficit and a second stimulus package, Hewings said.