Condo/Co-op Sales Slip, but Record Likely

Sales of existing condominiums and cooperatives slipped 1.3% in the third quarter to 815,000 units, but are still on track to set a new annual record, according to the National Association of Realtors.While third-quarter sales were down from the 826,000 units sold in the second quarter, they were up 5.4% from the 773,000 units sold a year earlier, the NAR said. David Lereah, the NAR's chief economist, said the three strongest quarters on record for condominium sales were all in 2002. "So far this year, the annual pace of condo sales has averaged an 826,000-unit pace," he said. "This is far above our previous annual record of 746,000 units set in 2001, so we'll easily set a new record this year." Low mortgage interest rates continue to spark condominium sales, with the average commitment rate on a 30-year fixed-rate mortgage at 6.29% for the third quarter, down from 6.82% in the second quarter, the NAR noted, citing Freddie Mac's mortgage market survey. The median price of an existing condo stood at $143,000 for the third quarter, up 14.9% from the third quarter of 2001.