The hot temperatures in the desert broke yesterday, and it’s beginning to feel like summer is almost over! By the middle of September, we start to see a little more real estate activity, as some people are hoping to find a home early enough to enjoy for the entire season. And, this year, these early shoppers have the advantage of lower prices, motivated sellers and low interest rates.

Sales activity in the desert has begun to show signs of improvement, with more sales now in the $500,000 -$1,000,000 price range. This price range is not dominated by bank owned homes, as the lower price range is, but many of these homes were once priced over $1 million. Sales of homes above $1 million are still scarce.

As we get closer to the seasonal market time, it is beginning to look like the high end market in the desert is at or near the bottom. Lower prices mean that buyers pay less for homes than they would have in the past, as well as lower property taxes. This may translate into more sales activity than we have seen for the past several years.

Probably the most affected segment of the desert market at this time is the custom lot market. I am seeing prices of building lots in high-end communities dropping dramatically in an attempt to find buyers. Some of these are bank owned, some are short sales and some are simply sellers who are trying to unload property. I have seen prices on some lots reduced 50-70%! Of course, this is not every lot, but the market is affected.

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

•	'25 Best Places to Retire' Palm Springs has been ranked #2 on Money Magazine’s recent list of the 25 Best Places to Retire.
•	'America's Most Expensive ZIP Codes' Indian Wells has been ranked as #274 on Forbes Magazine’s recent list of America’s Most Expensive Zip Codes, placed between Roslyn Heights, NY and San Diego, CA. The median home price in Indian Wells is measured at $929,000, which has only declined by 6%. This is a much lower decline than many areas.
•	'Emerging Markets: Searching for the Next Big Thing' This article from Unique Homes Magazine, takes a look at the real estate markets at a number of resort areas.
•	'Investors Are Back in Full Force' This short article from Real Trends states that investors are coming back into real estate in markets across the country.
•	'Bank Owned Homes For Sale above $1 Million in the Desert' 1 each at Tradition, The Hideaway, Andalusia in La Quinta, 1 in Indian Wells and 3 in Palm Springs.
•	'The 10 Most Expensive Homes Sold in the Desert in August 2009' According to the Desert Area MLS, these 10 homes ranged in price from $1,488,950 to $2,200,000 and were found: A home in the Ruth Hardy Park area of Palm Springs tops the list. 5 homes in Rancho Mirage sold at Waterford, Bella Clancy, Mission Ranch & Mission Hills CC. PGA West and The Hideaway in La Quinta, Indian Ridge in Palm Desert, and a home in Las Palmas Heights in Palm Springs were included.
•	Mortgage rates as of 9/15/09

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