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The Portland residential real estate market is steadily inching its way up.

According to the Regional Multiple Listings Service monthly market action report, pending homes sales in May reached their highest point for that month in the past five years. Real estate activity was also reportedly up, except for activity in new listings, which decreased slightly.

Last month, accepted offers for home purchases rose 6.6 percent from April and 16.4 percent from 2011 to 2,522 deals. In May 2007, pending home sales reached a high of 3,054 offers. Closed sales were also up, rising 15.1 percent from April and 20.4 percent over 2011 to 2,098 transactions.

According to the report, the inventory of unsold homes for sale in May was also at its lowest point since March 2007 at 4.2 months. A six-month supply typically represents a balanced market between buyers and sellers. A shorter supply favors sellers.

Home prices in May were on the rise last month as well, while the rolling 12-month average declined in most markets.

The median sales price rose nearly 1 percent during the first five months of 2012 compared to the same period a year ago, and rose 6.6 percent over May 2011 to $234,500. The average sales price increased 7.2 percent compared to May 2011 to $281,400.

On a rolling 12-month basis, prices declined almost across the board with the biggest drops coming from the outlying areas of Mt. Hood (down 7.3 percent), Columbia County (down 7.1 percent), Tigard and Wilsonville (down 5.9 percent) and Gresham and Troutdale (down 5.7 percent). Lake Oswego and West Linn meanwhile have evidently seen a bit of a boom, with prices increasing 25 percent to an average of $346,900.