Let me start this month by wishing everyone a Very Happy Holiday Season and a Prosperous & Healthy Year in 2010! Sometimes I find myself focusing too much on the real estate business, and not enough on all of the positive things in my life. This is a good time for all of us to reflect on what we have.

As 2009 draws to a close, I am glad to see it over! This has been a year of adjusting: Adjusting to falling real estate values; Adjusting to slowing real estate sales. And, adjusting to a new vocabulary: I now hear the words ‘distressed, bank-owned, foreclosure and short sale’ much more than ever before.

We are starting to hear some positive economic news: The unemployment rate has come down slightly; job losses have slowed down; the banks are starting to repay the TARP money; Ford Motor Company made it through without help. Maybe the ‘bottom’ is now in sight.

Although real estate sales activity in 2010 will probably not be too much better than 2009, it will seem much better. Most people have now adjusted to current real estate values, which should produce more sales. With more sellers pricing properly, more buyers should be encouraged into buying property.

Locally, the high end real estate market remains very quiet coming into the holidays. There are some luxury homes selling, but not many. Most of the sales activity continues to be under the $400,000 price range, with bank owned foreclosure property being the largest portion. But, I do expect to see sales pick up in mid-January.

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

•	Ritz-Carlton Gets Deadline From City: This article from The Desert Sun, offers some hope that the funding to finish the Ritz Carlton Hotel in Rancho Mirage is coming.
•	World’s Most Expensive Homes: This Forbes.com article discusses the current state of the ultra-luxury homes compared to last year.
•	Paradise Lost for Wealthy Resort Novice, From The Wall Street Journal: How the Resort market has been affected in this economic downturn.
•	This Graph Shows How Windermere Real Estate Dominates the Luxury Home Sales in the Coachella Valley, from January thru October, 2009.
•	Bank Owned Homes For Sale Above $1 Million in the Desert MLS: The number has grown from 5 to 9 and now to 13 bank owned homes priced $1 million and above. The home at Bighorn priced at $5.85M tops the list. There is 1 at Tradition, 1 at The Quarry and 9 others that are not in country club communities.
•	The 10 Most Expensive Homes Sold in the Desert in November 2009, according to the Desert Area MLS: November prices ranged from $1.32M for a home in Bermuda Dunes to $3M for a home at The Renaissance in Rancho Mirage. The top sales include 3 in Rancho Mirage, 3 in La Quinta and 2 in Palm Springs. 5 of these homes are in country club communities.
•	Mortgage Rates as of 12/15/09.

As always, if you have any comments or input regarding this newsletter, or the real estate market in general, please feel free to call me at 760.779.1653 or send an email to Bruce@BruceBlomgren.com.

Sincerely,
Bruce