1st Quarter Average Price Up 3.6%
The average apartment sale price rose to $1,168,000 from $1,128,500 in 4Q05. The price gain was driven by strength in the high-end segment of the market. First-quarter's median sales price dropped 7% from the previous quarter to $695,000 and represented a 2% decline from year-ago levels.

The Real Story-Volume Trends Are Choppy
According to the MMJ Sales Volume Index, first-quarter saw a 14% decline from a year ago. The quarter started out strong, with volume in January up approximately 30% from a weak December, however, finished down nearly 30% from last March. March typically is the biggest volume month of the year.

Rising Interest Rates Likely To Impact The Lower End Of The Market
Several factors, including rising interest rates, lower affordability, and higher inventories, will likely take a toll on the studio and 1-bedroom segment where owners are more price sensitive.