The fourth quarter's seasonally adjusted annual rate for existing condo and co-op sales was 721,000, down 1% from a record 728,000-unit rate in third quarter. Even with the drop, it is 4.9% above 1999 fourth quarter sales of 687,000 units.

Condo sales have been becoming more attractive in the last few years. Tax-law changes permitting people to trade-down to lower cost, easier-to-maintain properties without a tax penalty has been attracting leading edge baby boomers, says NAR president Richard A. Mendenhall. This market also attracts many first time buyers, especially single women, who are motivated by affordability factors.

The NAR cites Freddie Mac research on the median existing condo price in the fourth quarter as $114,300. This is 3.4% higher than the same quarter in 1999. By comparison, the median-priced existing single-family home was $139,400 in the fourth quarter, 22% percent more than the typical condo price.