CHICAGO (CBS) – It’s what thousands of families across the Chicago area have been waiting to hear: home prices and home sales are both up.

Those are two encouraging signs that the housing market is rebounding in Chicago.

CBS 2′s Suzanne Le Mignot takes a look at why home prices jumped 4.5 percent in May, and what you should know if you’re planning to buy or sell a home.

Lots of homes are not just for sale, a lot more are under contract now.

LISTEN: WBBM Newsradio’s Kris Kridel reports

Rick Sobin, senior vice president at real estate firm Prudential Rubloff, said, “Interest rates have fallen to all-time lows. So, now, really desirable properties are affordable, and that’s really starting to drive the market.”

Sobin said sellers who are pricing their homes at market value are seeing results.

“I’ve seen more multiple offers in the last three months than I’ve seen in the last five years,” he said.

@Properties real estate advisor Steve McEwen said he’s seen what Sobin is talking about firsthand with one client’s home in Lakeview.

He sold it after it was on the market for only three days.

“We had eight offers, seven above list price,” McEwen said.

“When you see an open house flooded with buyers, it makes more people motivated to write the offers,” McEwen added. “My client is ecstatic. We’re actually due to close this week.”

Sobin said the increase in sales is not just being seen in one area in Chicago.

“It’s funny, it really can be all neighborhoods, just depending again on where in that neighborhood the home’s located, or how walkable to amenities in that neighborhood is the home located,” Sobin said.

Sobin also said another indicator that the real estate market is improving is that there are more cranes visible when you look along the skyline, and new fences are going up in neighborhoods.