The desert real estate market has been fairly quiet since last month. The increase of sales activity I experienced from mid-April to mid-May stopped until this past weekend. Offers were being written, but they were not coming together. The Buyers’ expectations of extremely low prices are just not being met by the Sellers in many cases.

I have also seen a reduction in the number of bank owned homes priced above $1 million. More are selling than are coming on the market. But, from what I am hearing, there seem to be a larger number of high-end homes in ‘trouble or distress’ than in the past. These may create more bank-owned, high-end homes for sale in the future.

As we move into the summer months, there will continue to be high-end homes sold. The Canadian dollar has increased in value and we are getting more calls from north of the border, from people who have been waiting for the exchange rate to be more favorable. And, along with the Southern Californians who can get here in 2 hours to look, we will see people taking advantage of the relatively low prices.

There also continues to be more interest in property trades. Although, sometimes very difficult to put together, a trade does serve a purpose, and for the right situation can work very well for both parties.

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

•	‘Housing Picture Brightens in California’ The Wall Street Journal explains that tighter lending requirements have impacted high-end sales.
•	‘Indian Wells’ Residents Intensely Satisfied’ According to The Desert Sun, 98% of the residents like living in Indian Wells.
•	‘The Bubbles are Gone’ Forbes.com takes a look at the Credit Bubble, in relation to the Real Estate Bubble.
•	‘Appraisals Roil Real Estate Deals’ The Wall Street Journal takes a look at the problem appraisers are having in the current market.
•	5 Bank Owned Homes For Sale above $1 million in the Desert: This list is down from 10 since last month! 3 are in La Quinta and 2 are in Palm Springs.
•	The 10 Most Expensive Homes Sold in the Desert in May, 2009: According to the Desert Area MLS, these 10 sales ranged from $1.25 million to a $4.3 million sale for a 10,000 sq ft home on 3-acres on Clancy Lane, Rancho Mirage. 2 were at The Hideaway and 1 each at Tradition, The Vintage Club, Toscana CC, Stone Eagle Golf Club & Mirada Estates.
•	Mortgage rates as of 6/15/09.

I hope you find this information informative and helpful. Please contact me with any input or questions you might have, 760.779.1653 or send an email to Bruce@BruceBlomgren.com.

Sincerely,
Bruce