Wow! What an exciting day May 6th was! That 1,000-point drop in the Dow is still a big topic of conversation. With the following recovery of lost ground, nerves have calmed down a bit, but the volatility of the stock market has many investors feeling uncomfortable. But what to do?

This seems to be a great time to look at real estate again. With prices reduced 30%+ over the past 2-3 years, there probably isn’t too much further to go. Interest rates are still very low, and although financing is harder to get, it is still available for strong buyers. And, with the summer just ahead of us, many sellers are ready to deal.

This season is coming to a close, and the high end real estate activity during the 1st 4 months of 2010 has been much better than the same period of 2009. But, last year sales picked up in March and April, and this year sales have been pretty steady (at a below normal rate) until they seemed to slow in April. It will be interesting to see what happens during the next 6 months. I expect to see plenty of people looking, but I’m unsure of how many sales will be made.

Over the 30+ years I have been a Broker in the desert, we have been able to use the LA/OC/San Diego market as a sign of things to come. The desert has usually been about 18 months behind the coastal real estate market, both up and down. I am starting to hear of some strengthening on the coast, so hopefully we will feel this upturn in the future.

In the high-end desert market, there are 830 homes listed for sale priced above $1 million. There were 38 closings in April, and there are 78 homes in escrow. A large number of these are in the $1 - $1.5 million range.

This month I have included the following items:

•	This Wall Street Journal article is about home builders starting to buy undeveloped land again. This is an important indicator of a long term housing recovery.
•	Another Wall Street Journal article; this one about how some owners of high end homes have been holding on, but there is an increasing trend of foreclosures and short sales of luxury homes in many areas.
•	One of my clients/friends, Kevin Fortun, has launched a new line of gourmet sauces, and The Desert Sun has covered the story. Not a direct real estate story, but Kevin has listed and sold a number of homes with me and is the owner of Desert Sage Restaurant in La Quinta.
•	Bank Owned Homes Priced above $1 million: This month the list is imilar to last month, with 10 bank owned homes priced above $1 million. A $2,995,000 home at Mirada still tops the list. 1 home was sold from last month.
•	The 10 Most Expensive Desert Homes Sold in April 2010, according to the Desert Area MLS. Selling prices ranged from $1,585,000 for a home at The Estates at Desert Springs Marriot, to $2,800,000 for a home at Tradition Golf Club. There were 2 sales each at Tradition, Bighorn & PGA West, and 1 each at The Quarry, Indian Wells CC, Old Las Palmas Palm Springs & Desert Springs Marriott. There was also a sale at Bighorn reported at $10.1 million that was not entered into the MLS, but a Coldwell Banker agent represented the Buyer.
•	Mortgage Rates as of 5/15/2010: If you need a loan for a purchase or a re-finance, rates are still low and there is money available for qualified borrowers.

Thanks for taking the time to read my Newsletter. Please feel free to forward it to a friend.

Sincerely,
Bruce