Record Sales of Condos in 1st Quarter

Sales of U.S. condominiums and cooperatively owned apartments rose 17% to a record in the first quarter, as low mortgage rates and mild weather spurred purchases, according to the National Assn. of Realtors.

Sales rose to a seasonally adjusted annual pace of 838,000 units from 719,000 in the fourth quarter, said David Lereah, chief economist for the Washington-based trade group. The previous record was 773,000 in the third quarter, he said.

The record came as the 30-year fixed mortgage rate averaged 6.97%, compared with 7.01% a year earlier, according to Freddie Mac. The average U.S. temperature was 37.4 degrees Fahrenheit, compared with 36.9 degrees a year earlier, according to the National Climatic Data Center.

“We’ve had unseasonably mild weather throughout the United States, and that, combined with the low mortgage rates, made for a strong first-quarter market,” Lereah said.

The median price for condominiums was $135,300, compared with a single-family home median price of $150,900, Lereah said. Condominium prices appreciated at almost double the pace of single-family homes, rising 15% from a year earlier, compared with an 8% gain for single-family homes.

“We’re seeing higher demand for condos from the two market extremes--the empty-nesters in their peak earning years who are selling their big houses, and the first-time buyers who are just starting out,” Lereah said.

Sales of existing homes also rose during the first quarter to an annual rate of 5.78 million. The total, which is 8.5% ahead of the same time last year, is the largest sales volume for any quarter on record, the realtor’s group said.