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Although sales of existing condominiums and cooperatives slipped from record levels during the fourth quarter of last year, a new annual record was set, according to the National Association of Realtors (NAR). The seasonally adjusted annual rate for existing condo and co-op sales was 721,000 units in the fourth quarter 2000.

Richard A. Mendenhall, NAR President, stated, "Condos have been getting a boost in the last few years from tax-law changes which permit people to trade-down to lower cost, easier-to-maintain properties without a tax penalty. As a result, the leading edge of the baby boom generation has been very active in the upper end of the condo market, while many first time buyers, especially single women, are motivated by affordability factors."

Dr. David Lereah, chief economist for the National Association of Realtors summarized the fourth quarter by stating, "While interest rates were declining in the fourth quarter, the slowing economy took a little steam out of the market but it is still very strong." He added, "Condo sales in the fourth quarter were the second-highest on record, and they should remain strong in the months ahead as interest rates continue to decline."

Regionally, resale activity in the South was higher than a year ago and the median price was 4.8 percent higher at $87,900. In the West, the condo sales median price of $134,400 was up 3.7 percent from last year. In the Midwest, sales dropped 4.8 percent and the median resale price was $128,000. In the Northeast, condo/co-op resales declined 3.4 percent and the median price was $116,100,up 1.2 percent from a year ago.

The median existing condo price in the fourth quarter for the nation was $114,300, which is 3.4 percent higher than the same quarter in 1999. The median is the midpoint, which is a typical market price where roughly half of the units sold for more and half sold for less. By comparison, the median-priced existing single-family home was $139,400 in the fourth, which is 22.0 percent more than the typical condo price.

SOURCE: National Association of Realtors

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