The report, which looks at rental apartments in Miami-Dade, Broward and Palm Beach counties, states that transaction volume this year is "on track to exceed 2003 by a wide margin. The market experienced dramatic transaction activity during 2003, which accelerated through mid-year 2004. Although condominium conversions still dominate the market, a number of significant sales to income investors have contributed to record-breaking price levels so far this year."Owners and managers report stable to gradually improving apartment performance," the report continues. "Investor demand remains very high, and the appetite for conversion opportunities continues, notwithstanding recent interest rate-hikes."Brad Capas, senior director of apartment brokerage services for C&W, explains the conversion phenomenom. "The vast majority of apartment transactions during the past 12 months has been driven by condominium conversions," he says. "Today's very-low-interest-rate environment has increased demand for home ownership. Converters have capitalized on this surge in demand by acquiring rental apartments and converting them to condominiums. Under current market conditions, converters typically pay significant premiums above the prices traditional income investors can afford. As a result, many owners who might otherwise be long-term holders have elected to harvest profits by selling into this frenzied market."The total multifamily transaction volume in the three counties for the first half of this year was $1.4 billion. Of that, $695.6 million was in Miami-Dade, $500.3 million was in Broward and $218.9 million was in Palm Beach. For all of last year, the transaction volume was approximately $1.9 billion for all three counties combined. That figure was $1.3 billion for 2002 and $1.2 billion for 2001.In addition, the report finds that new property sales and converters paying premiums for older properties has led to a 40% growth in the average unit price in the first half of this year compared with 2003.