"Homes for sale are being mobbed right now," said Dave Kolakowski, associate broker with Buyer's Edge in the District. "It's to the point where we're seeing multiple contracts on properties again very regularly."

District sales records for 1997 back up Kolakowski's observations. The District turned in a remarkably strong performance, both in comparison to its past performance and that of other markets.

Monthly single family and condominium sales increased steadily last year, from 241 units in January to 559 units in December, according to Metropolitan Regional Information Systems Inc.

That's the Rockville-based company real estate agents use to track the area's residential real estate market.

Perhaps what's most remarkable about the District's sales performance is that it remained strong in December, when sales traditionally give way to the holidays.

That overflowed into this year, according to Michael Seay, vice president and director of sales for W.C. &; A.N. Miller Realtors in the District.

"Normally we get a market that picks up around January 15," Seay said.

This year, the D.C. market swung into action during the first week of the year, according to Seay.

The District's performance has also garnered national attention. D.C. home resales increased 29.8 percent, in a comparison of third quarter results from 1996 and 1997.

That's greater than any state, according to Washington-based National Association of Realtors.

Record Year

What's driving the D.C. market? Some real estate industry executives say the District is simply taking part in a national trend.

"I honestly believe that the majority of it is just tied to the general upswing in the market," said Stephen Israel, broker and president of Buyer's Edge in Bethesda. He's also licensed in the District.

Steady economic growth, low interest rates and low unemployment made 1997 a record year across the country. Resales hit 4.2 million units, the highest ever, according to the National Association of Realtors.

A fourth factor at work: the Baby Boom.

"Baby boomers are entering their peak growing and buying years," Seay said.

That's driving experienced buyers to go big, go small or -- most important for D.C. -- go urban.

"What we're finding is seven of our last 10 sales are people moving from Maryland into D.C.," Seay said.

But don't shortchange the District's progress, said others such as Peter Clute, a sales associate with Pardoe Real Estate in Georgetown. When asked what's driving the District's strong market, he enumerated D.C.-centric factors.

"The perceived turnaround in D.C., the actions that the president and Congress have taken, the reduction in crime, the perceived improvement of services," Clute said. "All of that generates a feeling that the District is a good place to be."

Another part of the mix, said Clute, is the new $5,000 federal tax credit for first-time home buyers in the District. That's part of the Taxpayer Relief Act of 1997.

"It's really beginning to have a significant impact in terms of the number of renters that are becoming first time home buyers," Clute said... Three hallmarks of a strong real estate market are appreciation, low inventory and new construction. Real estate agents said there's a little of each in the D.C. market.

Residential real estate in some parts of the District appreciated last year at rates slightly greater than inflation, according to Kolakowski. He estimated values were up 4 to 5 percent, while inflation was around 3 percent.

Media home prices in the District were also up last year. Median prices increased 5.3 percent for first-time buyers and 3.4 percent for repeat buyers in a comparison of 1996 and 1997, according to Chicago Title and Trust Co.