Statistics for the second quarter of this year show that the national median existing condo/co-op price has risen 14.7 percent in the last year to $139,300. Condos in years past have traditionally lagged in price appreciation compared to single-family homes. But recent statistics show that condo prices are now rising at double the rate of single-family homes.

It is believed that demographic shifts in the market are causing an upswing in the median price.

There is a developing trend that predicts a big increase at the upper end of the market, driven by baby boomers that are seeking simpler lifestyles but want very well-appointed units, especially since 1997, when there was a big change in the tax law. The new tax law eliminated taxes on capital gains from the sale of a home for most people, allowing them to make housing choices based on their needs and desires rather than feeling pressure to purchase a more expensive home and avoid a capital gains tax.

Prior to 1997, there was a once-in-a-lifetime exemption of up to $125,000 in capital gains on the sale of a home.

With the combination of both first-time buyers and empty-nesters buying condos, the market is active.

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.