As the traditional seasonal market period is winding down, there is still a fair amount of sales activity in the high-end desert real estate market. Although the current activity is far below that of 3-4 years ago, it is steady and will probably remain at this level for some time.

For the period of Jan – May, sales of homes in the Coachella Valley above $1 million were up 35% in 2010 over 2009. Thru May 31, 2010 there have been 168 homes sold above $1 million. 143 of these sold between $1-2 million, 16 sold between $2-3 million and 9 sold above $3 million. 85% of these high-end sales during this period were in the $1 to $2 million price range. Most of the sales above $1 million were in La Quinta with 37%, 23% were in Rancho Mirage and 17% were in Indian Wells.

Many of these sales were bank owned, short sales or distressed homes, and that inventory is now getting a little lower. And many of these sales were sellers willing to accept a lower price than they originally hoped to get. So, prices have continued to soften and I expect to see this to continue at least until fall. This is what is needed to get the market to stabilize. Then we will see what the next season brings.

The next 90-120 days will be a great buying opportunity in the desert. And, it will be a selling opportunity for some serious sellers. This summer could be busier than normal, with buyers looking for the best deals.

I have included the following items you might find interesting:

•	The National Association of Realtors economists are looking towards 2013 for a real estate recovery and point to several reasons way.
•	Trustees Sale to clear path to finish the Rancho Mirage Ritz-Carlton, which is slated to open no later than June 2011, so that any liens can be cleared before a new lender can move forward with finishing the project.
•	The Wall Street Journal reports that bank failures have spread to the Pacific Northwest, partly due to past construction loans.
•	We all remember the movie ‘Field of Dreams.’ Well, the actual cornfield in Iowa used in the movie is currently offered for sale.
•	A French Chateau is being built in the Ozarks! And, using 13th century building methods. This looks fun.
•	Bank owned homes priced above $1 million: The list remains at 11 again this month. A home at The Hideaway tops the list, priced at $2,550,000. There were 2 homes sold from this list from last month, and 2 homes added.
•	The 10 Most Expensive Desert Homes Sold in May 2010, according to the Desert Area MLS. Selling prices ranged from $2,000,000 to $8,500,000. There were 3 sales at The Hideaway, 2 at Bighorn, 2 in Palm Springs and 1 each at The Reserve, The Vintage and Artisan, in Rancho Mirage.
•	Mortgage Rates as of 6/15/2010: If you need a loan for a purchase or a refinance, 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