Condos and Co-ops See Record Sales

Sales of existing condominium and cooperative units eased in the fourth quarter of 2004, the National Association of Realtors, Washington, reports, but hit a record for the ninth consecutive year considering sales for the entire year.The total of 970,000 condo and co-op properties sold for 2004 reflects an 8% increase from the previous record of 898,000 units for 2003, the realtors' trade association said. In the fourth quarter, sales of the units slid 3% to a "seasonally adjusted annual rate" of 972,000, from 1 million units in the third quarter. However, sales were 3.4% above the 940,000 units sold in the fourth quarter of 2003. Pricewise, the median price for an existing condo or co-op was $203,200 in the fourth quarter, 16.7% higher than the price a year ago. In comparison, a typical single-family home cost $187,500 in the fourth quarter, up 8.8% from a year ago, the NAR said. David Lereah, the NAR's chief economist, said, "The condo market has clearly matured over the last decade, accounting for a market share almost as big as the new home market, and has been appreciating faster than single-family homes." Consequently, the NAR will include condo sales in its monthly tracking of overall existing home sales, beginning with its January report, the trade association reports.