Sales Data for June 2012

Coldwell Banker Palm Desert
No. Transactions: 81
New Listings: $20,182,643
Listings + Sales: $35,880,309

Windermere Palm Desert
No. Transactions: 58
New Listings: $11,059,000
Lisitings + Sales: $19,948,500

HK Lane Palm Desert
No. Transactions: 24
New Listings: $1,865,600
Sales + New Listings: $11,540,700

                This representation is based in whole or in part on data supplied by various Boards of Realtors or their MLS. Neither the Associations or their Multiple Listing Service's guarantees or is in any way responsible for it's accuracy. Data maintained by the Associations or their MLS may not reflect all Real Estate activity in the market. (Prepared by Rick Schreiber (949-637-7560) at the request of Coldwell Banker Real Estate.)

Coldwell Banker Palm Desert
Number of Transactions: 81
New Listings: $20,182,643
New Listings + Sales: $35,880,309

Windermere Palm Desert
Number of Transactions: 58
New Listings: $11,059,000
New Listings + Sales: $19, 948,500

HK Lane Palm Desert
Number of Transactions: 24
New Listings: $1,865,600
New Listings + Sales: $11,540,700

This representation is based in whole or in part on data supplied by various Boards of Realtors or their MLS. Neither the Associations or their Multiple Listing Service's guarantees or is in any way responsible for it's accuracy. Data maintained by the Associations or their MLS may not reflect all Real Estate activity in the market. (Prepared by Rick Schreiber (949-637-7560) at the request of Coldwell Banker Real Estate.)

Rancho MIrage Home Sales 2008-2012

Below is a graph showing homes sales and average price from 2008 to 2012 in Rancho Mirage, CA. The graph shows that while the average price of homes is dropping, the prices are not dropping as fast as they were. In addition, the number of homes sold has increased. This information can be helpful to you if you are thinking about selling and are considering what price you should list your home.

Data Source: Desert Area MLS, July 24, 2012, DRE License #00296699

Short Sale Tax Relief Expires December 31, 2012

The tax relief law that allows homeowners to exclude from income certain debts that have been forgiven by their lender is set to expire December 31, 2012. Why is this important now? Because it can take up to 6 months to receive formal short sale approval and close a short sale escrow.

According to a recent article in the Los Angeles Times, when this provision expires Sellers who participate in short sales WILL have to report the debt relief they receive from the short sale lender as income on their federal tax returns. .As of today, the tax break is not extended, so time is of the essence …

The following are the main items that escrow looks at/needs when processing a short sale:

1. Short Sale Addendum to the Purchase Contract

2. Real Estate Commissions

a. Escrow will use the Short Sale Approval letter to determine permissible broker commissions (regardless of what the listing

agreement states)

b. MLS should provide clear provisions for short sale lender commission changes

3. Written Short Sale Approval Letter

a. Escrow will verify that the Sales Price and Proceeds amounts match what is stated on the Short Sale Approval letter

b. In the case of proceeds to the Lender, escrow will conrm that they receive , at a minimum, the amount stated on the

Short Sale Approval letter

c. Escrow must close within the stated time frame or an extension and an updated Short Sale Approval letter will be required

In order to prevent closing delays, Sellers should be made aware of the fees that Short Sale Lenders may not approve and/or require additional information (see a limited, non-inclusive list below).

Short Sale Negotiator Fees

• Home Warranty

• Retrofit work*

• Termite Work *

• Delinquent Property Taxes**

• HOA fees***

* Short Sale lender typically approves inspection fee but not the actual retrofit or termite work

** Re-submission to the short sale lender for a revised short sale approval letter may be needed (and may cause closing delays)

*** Short Sale lender may approve payment of HOA dues but not always approve delinquencies or certain other HOA fees such as Transfer fee or Document Fee

Typically when the Short Sale Lender does not approve the Seller’s payment of certain escrow/closing fees, the costs may be paid for by the buyer provided its permitted in the Short Sale Approval letter.

Sources:

1. http://articles.latimes.com/2012/jan/29/business/la--lew-20120129

2. http://www.irs.gov/individuals/article/0,,id=179414,00.html

Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has

been gathered from sources believed to be reliable, please note that individual situations can vary, therefore, please consult a professional for specific advice.

California Homeowner Bill of Rights Becomes Law

All eyes in the nation now turn to California as Governor Jerry Brown signed into law today, Wednesday, July 11, 2012, the Homeowner Bill of Rights to help struggling Californians keep their homes. This law aims to avoid foreclosure where possible to help stabilize California's housing market and prevent the other negative effects of foreclosures on families, communities, and the economy. The new law will generally prohibit lenders from engaging in dual tracking, require a single point of contact for borrowers seeking foreclosure prevention alternatives, provide borrowers with certain safeguards during the foreclosure process, and provide borrowers with the right to sue lenders for material violations of this law.

This law will generally come into effect on January 1, 2013. It only pertains to first trust deeds secured by owner-occupied properties with one-to-four residential units, unless otherwise indicated below. "Owner-occupied" means the property is the principal residence of the borrower and secured by a loan made for personal, family, or household purposes.

The full text of this law, also known as Assembly Bill 278 and Senate Bill 900, is available at www.leginfo.ca.gov.

Housing Market Update

From First Captial A Mortgage Company, an affliate of Coldwell Banker

Retail Real Estate Recovery Taking Hold: Now that residential real estate has bottomed and started to make some gains, commercial real estate is starting to pick up to. This is very important to your local housing market as a vibrant retail business always supports local housing demand. Vacancy rates and rents at U.S. neighborhood shopping centers improved for the second quarter in a row, further evidence the sector is moving toward recovery after years of weakness, real estate research firm Reis said on Friday. The retail real estate sector has been among the hardest hit in commercial property. At the mercy of consumer spending, the sector has reflected the diverse pressures and changes since the housing crisis began in 2007. The first quarter marked the first time in nearly seven years that average vacancy rates at strip malls fell, and that trend continued in the second quarter, Reis said, with the rate declining to 10.8 percent. While demand for space is weak, the firm said, new construction is even weaker. At the same time, asking rents rose 0.2 percent, up from a gain of 0.1 percent in the first three months of the year.

What Happened to Rates Last Week?

Happy 236th Birthday America

Tall Ships Parade, New York City, July 4, 1976

              On July 4, 1976, sixteen tall ships from around the world converged on New York City harbor to participate in America’s 200^th birthday celebration. We sat in the grandstands and watched the parade of these grand old boats. The national anthem of each country was played as the ship passed the grandstand. It was a very patriotic moment for us. In the evening, red, white and blue fireworks were displayed over our statue of liberty.

Flag flying over USS Arizona, Pearl Harbor, Hawaii

Washington, D.C. July 4, 2012