The seasonally adjusted annual rate for sales of existing condos and co-ops was 763,000 units during the first quarter, up from the 721,000-unit rate in the fourth quarter of 2000. The rate for the first quarter of 2000 was 706,000 units.

"Mortgage interest rates were one-and-a-quarter points lower in the first quarter than they were a year ago. In addition, strong household formation is creating more first-time buyers, who opt for the affordability and lifestyle factors in condo living," says NAR chief economist David Lereah.

NAR president Richard A. Mendenhall adds that aging Baby Boomers also factor into the record sales level. "Older households also are seeking simpler lifestyles, but are accustomed to a lot of amenities, so higher-end units also are selling well," he says.

Freddie Mac figures show that the average commitment rate on a 30-year conventional fixed-rate mortgage was 7.01%, down from 7.64% in the fourth quarter. During the first quarter of 2000, the rate was 8.26%.

According to the NAR, the median existing condo price was $117,700 in the first quarter, up 7.8% from last year. That compares to a medium single-family home price of $139,700 in the first quarter, up 4.4% from a year ago. The typical single-family home costs 18.7% more than the median-priced condominium. "The fact condo prices are rising faster than single-family homes reflects both strong demand and increasing sales of higher-priced units," Lereah says.

Regionally, in the Midwest, condo and co-op sales were 13.9% higher over fourth quarter sales, and 8.4% over the sales rate a year ago, with the median resale condo price was $131,000, up 12% over last year. In the West, sales were up 9.5% from the fourth quarter and 7.4% over the same time last year, with a median price of $140,100, up 5.1% over a year ago.

Co-op and condo sales rose 3.4% in the South over the fourth quarter, and were up 9.7% over the same period last year. The median price was $91,500, some 5.8% higher than the first quarter of 2000. In the Northeast, sales were up 0.9% over the fourth quarter, and 4.5% over the same period a year ago. The median price was $115,700, up 7.5% over last year.