David Lereah, the association's chief economist, said historically low mortgage interest rates and strong demographic factors are favoring the condo market. "Younger households, including children of the baby boom generation, are taking advantage of low interest rates and getting into the housing market, while many of their parents' generation are seeking simpler lifestyles," he said. "Lower-end and more affordable condo units are attractive to first-time buyers, especially in high-cost markets, while luxury units are meeting the preferences of wealthier households that are closer to retirement."

According to Freddie Mac, the national average commitment rate for a 30-year conventional fixed-rate mortgage was a record-low 5.84 percent in the first quarter, down from 6.08 percent in the fourth quarter; it was 6.97 percent in the first quarter of 2002. The Freddie Mac mortgage interest rate series began in 1971.

National Association of Realtors President Cathy Whatley said a strong sales trend is expected to continue.

The median existing condo price during the first quarter was $150,700, which is 12.5 percent higher than the same quarter in 2002.

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.