Here we are in mid-November and at the start of another season in the desert! As usual, the weather is fantastic, the golf courses are open for play, the grass is emerald green and the winter residents and visitors are returning!

Since I have just returned from several days at the National Association of Realtors (NAR) Annual Convention (appropriately held in Las Vegas this year), let me bring you up to date on what was on the agenda:

First and foremost is The Changing Real Estate Market. The best description I heard was that the real estate market is always changing. The Realtor does not have control over the many factors that affect the real estate market, but we can strive to understand it and advise our clients properly.

Next is the Effect of the ‘Negative Media’. Overwhelmingly the feeling is that the media has played a negative part in the way the public perceives the real estate market. There are many areas of the country that are not experiencing declining values, but the media tends to use ‘national averages’ and not many areas are ‘average’. NAR has budgeted $2.2 million over the next year to try and combat the negative press.

The issue of Sub-prime Mortgages and Foreclosures is a major topic. Most of the analysts feel that the areas and price ranges affected by these problems will not see an improvement until early 2009.

Sales of single family homes under $1 million is the market in our area that is the slowest. There are not many foreclosures in Indian Wells, Palm Desert or Rancho Mirage, they are most heavily concentrated in Coachella, Desert Hot Springs &  Indio. It will probably be 2009 before this inventory of homes is absorbed and this market finds stabilization.

On the local level, we are just at the start of our season, and it is too early to determine how the sales activity will be for luxury homes, as well as 2nd and 3rd homes. These buyers are able to buy the lifestyle if they feel confident in the overall state of the economy. This market will be less affected than sales of lower priced homes.

Another point I heard often at the NAR convention is that for long term, this is a great time to consider buying real estate. The inventory is high, many sellers are serious and interest rates are still historically low. With 30+ years selling real estate, I have been through several ‘changing markets’ and I truly agree that this is a perfect time to be a Buyer!

Below are several articles that you might find interesting this month:

•	America’s Undervalued Real Estate Markets: From Forbes.com, this article identifies several areas where real estate seems to be undervalued.
•	Popularity of Outdoor Living Spaces Increases: Outdoor living space is very important in the desert market. And, I don’t expect this to change!
•	Sotheby’s Sells 84-carat Diamond for $16.2 Million: This is Sotheby’s Auction House, and Dyson & Dyson is now affiliated with Sotheby’s International Realty. Many clients of Sotheby’s Auction House are also clients of Sotheby’s International Realty.
•	The 10 Most Expensive Homes Sold in the Desert in October 2007: The Hideaway tops the list with a $3.4 million home sold, as well as 3 of the Top Ten. Toscana has 2 closings, Rancho la Quinta has 1 closing, as well as 3 Rancho Mirage homes and 1 Palm Springs home.
•	Mortgage Interest Rates as of 11/15/07: I thought I would include this information in case you are interested in knowing what interest rates are from one of my preferred lenders.
•	Residence International Magazine Winter Edition: Preview some of the world's finest properties for sale and see my advertisement on page 221.

Thank you for your on-going support and confidence. Repeat clients and referrals continue to be a larger and larger part of my business. I will always do my best to be a trusted advisor. If you have any real estate related questions or comments, please give me a call at 760.779.1653 or email at bruce@bruceblomgren.com today.

May you and yours be blessed at this Thanksgiving Holiday.

Thanks,
Bruce