What an interesting and exciting time for the real estate business in The Coachella Valley! Halfway through February, it is becoming more evident that 2008 is going to be one of the most challenging years I have seen during my 25 years in the desert!

With 2007 in the record books, statistics are starting to be released on many subjects. Here are some 2007 statistics the California Desert Board of Realtors has just released:

•	There were 6,736 homes sold in the Coachella Valley in 2007.
•	The average sales price was $518,500.
•	There were 589 homes priced over $1,000,000 sold in 2007, down 18% from 2006.
•	There were 132 homes priced over $2,000,000 sold in 2007, down 19% from 2006.
•	The average price for a home sold in Indian Wells in 2007 was $1,115,000.

What about 2008?

Since this is an election year with an overall economic slowdown (along with the on-going efforts by the government and the lending industry trying to keep the home foreclosure issue from totally getting out of control), local real estate sales activity in 2008 will probably continue to decline in the number of sales with average sales prices remaining steady.

Real Estate sales activity has started to pick up some steam for the seasonal period. Potential Buyers are very concerned about further declines in values, and since this area is dominated by 2nd & 3rd homes, buying decisions are very discretionary. Offers are being written much lower than asking prices, and we have not been accustomed to this in recent years. If the sellers are willing to negotiate (some are and some are not), some homes are selling. I am currently working on 4 Purchase Offers and I will be happy if 2 of these go to contract.

With large numbers of price reductions on existing listings, lower listing prices for new listings and lower sales prices negotiated in many cases, I believe we are seeing Real Estate market values re-establish. Hopefully, this will have many homes priced much more competitively (lower) when the Buyers are ready to re-enter the market in larger numbers.

Included this month are several articles you might find interesting:

•	I am very pleased to have received the ‘Real Estate Online Marketing Award of Excellence.’ from Realtor.com. This award recognizes top agents who consistently provide great marketing services on behalf of their clients.
•	The Desert Sun printed this article showing that the high-end and luxury home market has not been affected as much as the lower end market during this downturn.
•	LA Times Home of The Week featuring a Spanish Colonial home in Rancho Santa Fe. If you know of anyone who might be interested in a home like this, I have great Realtor connections in Rancho Santa Fe.
•	The 10 Most Expensive Desert Homes sold in January 2008, according to the Desert Area MLS. Bighorn tops the list with the highest sales price and 3 homes. Tradition, Hideaway, PGA West, Clancy Lane and Vista Dunes Estates each made the list.
•	Mortgage Interest Rates as of 2/15/08
•	Residence International Magazine Winter Edition.

Thanks for taking your time to look at my eNewsletter. If you have any suggestions or questions, please give me a call!

Sincerely,
Bruce