Bruce Blomgren - Luxury Desert Real Estate Newsletter

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Monday, March 16, 2009

Valued Friends & Clients,

Now that we are halfway through March, the Desert Real Estate Community is still waiting for ‘the season’ to kick in! The BNP Paribas Open Tennis Tournament is under way, which brings many people to the desert. The weather is great and continues to be among the best weather in the country.

As I think about the current real estate market, as well as the overall economy, I only have one thing to say: ‘It is what it is!’ Maybe by having a different outlook than is common right now, things might make more sense.

Real Estate prices in California have fallen to 2002 levels and the Dow Jones has fallen below 7,000. This sure looks like there is an incredible opportunity right in front of us!

Is there a light at the end of this tunnel? Of course there is! One of the things we have always been taught is that Real Estate always cycles. So we are now in a down cycle, which will end, but we are not sure when.

With regards to the Coachella Valley Real Estate Market, here is how I see it:

If you are a Seller, you had better be serious! Your property needs to be priced properly to attract potential Buyers. You should want your property to be the next one sold. If you are not a serious Seller, wait 1 or 2 years to try to sell.

If you are a Buyer, this is a great time to be in the market! Even if we haven’t yet hit the bottom, we seem to be getting very close. But, don’t buy for the short term. If you plan to hold a property for 4-5 years or more, you will be fine. And, in the case of 2nd homes, you will be able to enjoy the property in the meantime.

Here are a few items you might find interesting:

•	An article from Forbes.com regarding coming to grips with the way things are.
•	From The LA Times, this article discusses that California home prices hit 2002 levels in January.
•	On a more positive side, an excerpt from “Charging the Human Battery”.
•	From Forbes.com this article discusses how our economy can survive bad economic policies.
•	The Most Expensive Bank Owned Homes listed for sale in the Desert, according to the Desert Area MLS.
•	The 10 Most Expensive Homes Sold in the Desert in February 2009, according to the Desert Area MLS. The top ten sales are priced from $1.375 million to $2.8 million. Topping the list was a residential home in Rancho Mirage. The Hideaway CC, Toscana CC, PGA West & Mountain View CC made the list. There were 2 homes in Palm Springs and 2 homes at Griffin Ranch, LQ. 5 were in La Quinta, 2 in Rancho Mirage, 2 in Palm Springs and 1 in Indian Wells.
•	Mortgage rates as of 3/15/09.

Thank you for taking the time to read my Newsletter. I try to be candid and realistic with my comments and the information brought to you. If you have any real estate related questions or needs, please give me a call, or send me an email at Bruce@BruceBlomgren.com.

Sincerely,
Bruce

The No-Regrets Financial Plan
Forbes.com

One of the more common discussions I have with clients these days is the one in which I explain that their house was never really worth a million dollars, and 10 months ago the Dow Jones industrial average was overpriced by the 5,000 or so points it's lost since then. The marketplace has spoken, and it's time to move on. That turns out to be easier said than done...

Southern California Home Prices Fall to 2002 Levels
LA Times

Southern California -- with home prices now at 2002 levels and falling -- is at the start of what is likely to be a long period of relatively affordable housing, economists and housing market analysts say. Home prices are now below their historical average compared with incomes, putting them within reach of more people than they have been since about 2000, several studies show...

Charging the Human Battery
Mac Anderson

According to legend, a young man while roaming the desert came across a spring of delicious crystal-clear water. The water was so sweet he filled his leather canteen so he could bring some back to a tribal elder who had been his teacher. After a four-day journey he presented the water to the old man who took a deep drink, smiled warmly and thanked his student lavishly for the sweet water. The young man returned to his village with a happy heart...

Bad Policies Can't Keep A Good Economy Down
Forbes.com

Stocks just had one of the worst months since the 1930s and economic data was ugly, too. Real gross domestic product was revised down sharply for the fourth quarter of 2008, home sales fell further, business investment was weak and unemployment claims jumped again...

Bank Owned Luxury Homes for Sale March 2009
Desert Area MLS

Check out this article and see the most expensive Bank Owned Homes listed for sale in March 2009 in the desert, according to the California Desert Association of Realtors...

10 Most Expensive Desert Homes Sold in February 2009
Desert Area MLS

Check out this article and see the 10 most expensive homes sold in February 2009 in the desert, according to the California Desert Association of Realtors...

Mortgage Interest Rates as of March 15, 2009
Franklin Loan Center

The following is a breakdown of home mortgage rates as of March 15, 2009. These rates are for several of the most preferred loan programs from one of Bruce's preferred lenders...

49607 Montana Way

Rancho La Quinta CC, LQ

$1,685,000

7304 Kavanaugh Court	Palm Desert	$1,265,000
72633 Jamie Way	Clancy Lane, PD	$895,000
75085 Muirfield Court	Desert Horizons CC, IW	$799,000

76142 Via Firenze
Toscana Country Club, Indian Wells

Priced at:
$1,495,000

Located on the 8th Fairway with a lake view at Toscana Country Club, this home has been value priced! Better than new, it has been upgraded and is offered designer furnished. With 4 bedroom suites, including an oversized, detached casita, 4.5 baths and a great room plan, this Amalfi 622 plan with Italianate exterior is a very popular plan... Click for more information