The National Association of Home Builders reports the "condo market is showing initial signs of a revival in some markets across the country." This latest "uptick" is also helping the apartment rental market, according to multifamily housing developers who spoke at the trade association's International Builders' Show in Orlando last month.

"We are definitely emerging from a difficult time and seeing some light in the condo market," says Bill Donges, CEO of the Atlanta-based Lane Company, which has condominium developments in several cities, including Hollywood, Fla. "The condo lifestyle -- especially in urban areas -- is very attractive, and with the interest rates low and the selection good, we are seeing buyers come back into the market," he says.

Donges adds that traffic has picked up in his company's sales office, resulting in buyers getting good deals with an industry-wide supply high-demand low scenario.

As builders draw down the level of new development, the inventory keeps sinking and that will help with the market turn, according to Steve Patterson, vice chairman of NAHB's Multifamily Leadership Board and CEO of ZOM USA, which builds and manages apartments throughout the Southeast.

During the boom, condominiums made up as much as 45 percent of all new multi-family construction. Experts say, the current market should return it to the normal 20 or 30 percent of new construction.