Dear Friends,

As we now move into the middle of June and the traditionally "hot" (figuratively and literally) summer months, this is a good time to evaluate the current market conditions in the Los Angeles area.

New statistics show that home prices increased yet again last month, but sales are way down. Sales are down about 20%. To me, this portends a softening of the market in terms of price. The $64,000 question is by how much.

In our area, the reality is that we have demand almost all of the time for housing. Our area's demographics are such that we have a high percentage of divorced and single people, each of whom need housing; in addition, immigration and migration trends to our state are holding steady or are on the upswing. These folks need places to live as well. Our climate and diverse economy helps to drive this of course.

So, my take on this summer's real estate market is that we will continue to see more inventory, and we'll continue to see slight to moderate increases in price appreciation, but nothing stratospheric.

Of course, interest rates will play a key role in the demand side of the equation. Long term mortgage rates are holding steady at this time, which is good.

I look forward to your comments and questions.

Michael Trust