Condominium sales in the state are up about 8.2% this year, thereport by the LA-based California Association of Realtors says,following a 7.5% sales gain in 1999 from '98 levels. More peopleare looking to the multifamily market because the cost offreestanding houses has soared, the trade group adds.

Not surprisingly, condos are also accounting for a greater shareof the overall sales pie. Multifamily units are accounting forabout 25% of overall homes sales in the state, CAR says, up fromonly 18% a year ago.

More gains are expected in 2001, most analysts say. And whileconstruction of condo and townhome developments has lagged over thepast several years, it could get an unexpected boost in 2001 from aCalifornia Supreme Court ruling earlier this week that put newlimits on a condo buyer's ability to sue builders over certaintypes of defects.