As I review my Newsletter from last month, I am happy to say that it looks like I was correct in sensing that we were nearing the bottom of the housing market in the Coachella Valley! Over the past week, I have seen several economists on the morning TV shows saying that the economy appears to have hit the bottom last month!

Sales have definitely picked up in the last 30 days. I have 8 escrows open and I am working on several more sales. I haven’t been this busy in 18 months. Most of these sales are bargain priced and are low when compared to the old comparable sales. But, these will become the new comparable sales as the market adjusts to a different value level.

So, this is what I expect to see over the next 6-9 months: Due to the large inventory of homes for sale, as well as a good number of sellers who really want or need to sell, we will not see any price increases for awhile. The best hope is that prices have bottomed, and even this might not be the case.

Sales in the desert over the next 45-60 days will be focused on the serious sellers. The Buyers who are going to start coming off the fence will be looking for the best deals. As we get into July and August, the bottom feeders will be out, looking to ‘steal’ something. But, as usually happens in the summer, many homes will be taken off the market until fall to avoid these buyers. In September we should start seeing a few more sales made for the desert lifestyle in addition to pricing.

The big question will be what happens in November, which is the start of the season, and normally the start of more sales based on the lifestyle. Stay tuned.

Here are a few items you might find interesting:

•	‘The Recession is Over’ This May 5th article from Forbes looks at the economic indicators saying the worst is behind us.
•	‘Things are Looking Up’ Bernanke also has an optimistic outlook, according to the Associated Press.
•	This Wall Street Journal article says that more homes are selling in California.
•	Have you had your water pipes knock and not know how to stop it? Here is something to try if it does happen.
•	10 Bank Owned Homes for sale above $1 million in the desert: 4 are in Palm Springs, 2 in Indian Wells, Rancho Mirage & La Quinta (including a home at The Quarry and one at The Tradition in La Quinta).
•	The 10 Most Expensive homes Sold in the Desert in April, 2009. According to the Desert Area MLS, these sales ranged from $1.5 million to a $4 million sale at Bighorn Golf Club. 4 of these sales were at The Hideaway, 2 at Tradition and 1 each at Rancho la Quinta, Ironwood CC and Old Las Palmas in Palm Springs.
•	Mortgage rates as of 5/14/09.

Thanks again for taking the time to read my Newsletter. Your input is always appreciated and responded to. If you have any real estate related questions or needs, please give me a call at 760.779.1653 or send an email to Bruce@BruceBlomgren.com.

Sincerely,
Bruce