The middle of March is here with nice, warm days and cool nights! The lush landscaping is beautiful and the BNP Paribas Tennis Tournament in Indian Wells is in full swing. Along with tennis, we had the La Quinta Arts Festival and the Palm Springs Rodeo this past weekend, bringing many visitors to town.

All of these positive elements, along with snow-capped mountains, create the main reason we are all here: the wonderful weather and lifestyle. And, the weather in most of the rest of the country is not very pleasant.

I did see an increase in high-end home sales in February, and that seems to be continuing in March. But, the inventory of homes for sale remains high, giving Buyers plenty to look at. And, the Buyers are not shy about making low offers. The sales that are being made are at prices that appear to be on the low side, but, by the time escrow closes, the Seller is happy and the sales price doesn’t seem so low. It is just the way it is.

Here is my outlook for the high-end and luxury home market:

• Inventory will remain at or near current levels for the next 2-3 years
• Prices sill continue to soften into next year
• Buyers will buy with the intention of holding the property for a longer period of time
• More cash will flow into the sales transaction
• Lifestyle will again play a major role in home sales
• All of the above will come together to create a ‘new normal’ for the next 10 years

This month I have included the following items you might find interesting:

•	Larry Ellison has purchased the Indian Wells BNP Paribas Open Tennis Tournament, which is exciting news for the desert.
•	The Desert Sun has reported that Stone Eagle Golf Club in Palm Desert, now bank owned, has closed for play. Maintenance continues as the bank seeks a buyer.
•	This Desert Sun article addresses the bargain hunters in the desert real estate market.
•	Forbes.com describes the Homes of the Billionaires.
•	Bank Owned Homes for Sale Above $1-Million in the Desert Area MLS: This month’s list only has 4 homes, indicating a slowing of high-end bank owned homes. A home at The Hideaway priced at $2.695M tops the list, with an older home on 6-acres in Rancho Mirage, a home in Indian Wells, and a home in Rancho Mirage are included. Most of the homes on this list are sold within 30-60 days on the market.
•	The 10 Most Expensive Homes Sold in February 2010, according to the Desert Area MLS: Selling prices ranged from $1.925M for a home at Morningside Country Club, to a high price of $7.675M for a home at Bighorn Golf Club, again at the top of the list! There were 3 sales at The Hideaway, another at Bighorn and 1 each at Mirada, The Tradition, The Estancias in La Quinta and the Old Las Palmas area of Palm Springs.
•	Mortgage Rates as of 3/15/2010: Yes, there are high-end loans available for qualified borrowers.

I always hope you find the information I provide to be interesting and informative. With more than 25 years of experience in the desert real estate market, I feel I have a unique insight to the day-to-day activity. Please feel free to contact me with any comments you may have.

Sincerely,
Bruce