Nationally, the seasonally adjusted annual rate for existing condo and co-op sales was 831,000 units in the second quarter, down 0.7 percent from a record 837,000-unit rate in the first quarter. It remains 12 percent above the 742,000-unit level of sales activity in the second quarter of last year, and is the second highest pace since the National Association of Realtors began tracking condo sales in 1981.

The association's chief economist, Dr. David Lereah, said there are some parallels with the single-family housing market. "We're seeing sales of condos and co-ops come off of unprecedented activity, far above any previous records," he said. "Clearly, that can't be sustained indefinitely, but sales will remain historically strong for the foreseeable future, and we should set a new record for the condo market this year."

The median existing condo price was $139,300 in the second quarter, which is 14.7 percent higher than the same quarter in 2001. But that's a national average that doesn't represent Silicon Valley condo prices.

While Santa Clara County showed an increase to $360,000 in June '02 from a median price of $339,000 in June '01, median prices for condos were down slightly from the highs reached one year ago at the same time. In Los Gatos the median condo price was $378,000 compared to a year ago, when it was $435,000. In Saratoga, June '02 showed a median price of $475,444, compared to the median price of a condo one year ago, $549,000. In Cupertino the median price for a condo was $463,000 in June '02 and $523,500 at the same time last year.

"Condo price appreciation is double the rate of single-family homes," Lereah said. The median is the midpoint market price at which half of the units on the market sold for more and half sold for less.

By comparison, the median-priced existing single-family home was $157,700 in the second quarter, up 7.4 percent from a year ago. The typical single-family home costs 13.2 percent more than the median-priced condominium.

National Association of Realtors President Martin Edwards Jr. said that strong sales of upper-end units are contributing to a higher median condo price. "A recent association survey shows 42.2 percent of all condos are purchased by people over 50 years of age," he said. "This group consists largely of baby boomers whose kids have left the house. These empty-nesters are choosing an easier housing lifestyle, but also are seeking well-appointed units, which means luxury condos are now a bigger segment of the market."

"At the same time, first-time buyers also are drawn to condos by lifestyle considerations, but a bigger factor for them is the lower cost of more modest units," Edwards said.

Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.