Sule Aygoren Carranzais managing editor ofRealEstate Forum.

SAN DIEGO-For the third consecutive year, apartment sales slowedin the metro area as the market continued to correct itselffollowing the record activity levels achieved in 2001 through 2004.According to Cushman & Wakefield, 482 properties changed handsin 2007, down 30.8% from the prior year, when 696 communitieschanged hands. Compare those figures to the 1,339 deals that tookplace in 2004--35% more than last year. In fact, last year's tallywas the lowest annual total since 1993, when 449 asses traded.

Not surprisingly, a slowing condominium market is a main culpritin the declining sales activity. As George Carlson, Cushman &Wakefield's associate director and apartment specialist, tells it,"The market is correcting itself following several years of recorddemand for units, including those for conversion to condominiums.Prices skyrocketed and cap rates declined, and while condoconversion activity has slowed significantly, prices are stillviewed as too high by some investors--particularly by smaller,local buyers."