Washington, DC, Nov. 6--Sales of existing condominiums and cooperatives skyrocketed to a new record in the third quarter, according to the National Association of Realtors.
Existing condo and co-op sales jumped 12.9 percent to a seasonally adjusted annual rate of 971,000 units in the third quarter from a previous record 860,000-unit pace in the second quarter. Sales were 18.0 percent above the 823,000-unit level of sales activity in the third quarter of 2002.
David Lereah, NAR's chief economist, said the degree of rise was a bit of a surprise. "We were expecting a new record for condo sales in the third quarter, but being so far above the previous record is incredible," he said. "The demand for all kinds of housing is unprecedented, and where units are available they're selling briskly."
NAR President Cathy Whatley, owner of Buck & Buck Inc. in Jacksonville, FL, said the strong demand also is driving condo prices. "Low interest rates and growing demand from a rising number of households, against a backdrop of lean housing inventories in both the single family and condo markets, are placing a lot of pressure on condo prices. High levels of luxury sales also are feeding price gains."
The median existing condo price was $167,200 in the third quarter, which is 16.6 percent higher than the same quarter in 2002. The median is a typical market price where half of the units sold for more and half sold for less. By comparison, the median-priced existing single-family home was $177,000 in the third quarter, up 10.1 percent from a year ago.
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.01 percent in the third quarter, up from 5.51 percent in the second quarter; it was 6.29 percent in the third quarter of 2002. The second quarter average interest rate was the lowest since the Freddie Mac series began in 1971.
In the South, condo/co-op resale activity jumped 15.3 percent in the third quarter to a record 445,000-unit pace, which was 16.5 percent higher than the same quarter in 2002. The median price in the South was $135,500, which was 16.0 percent higher than a year ago.
Existing condo and co-op sales in the Midwest increased 13.9 percent from the second quarter to a record level of 115,000 units in the third quarter, and were 18.6 percent above the third quarter of last year. The median resale condo price in the Midwest was $162,800, up 9.3 percent from a year ago.
In the West, the sales pace of condos and co-ops rose 12.1 percent from the second quarter to a record annual rate of 259,000 units in the third quarter, and was 18.8 percent above the sales rate during the third quarter of 2002. The median price in the West was $204,700, up 21.7 percent from a year earlier.
In the Northeast, condo/co-op resale activity was up 7.0 percent between the second and third quarters to a record 152,000-unit pace, and was 21.6 percent above the third quarter of 2002. The median price in the Northeast was $183,000, up 21.8 percent from a year ago.
