Amongst the 45 special events taking place during the festival, three especially caught my eye –
1) A world premier screening of a film about architect Bill Krisel’s career and legacy of Alexander homes that he designed during the 50’s.
2) A Celebrity Home Tour of homes belonging to Frank Sinatra, Frederick Lowe, Dinah Shore, Peter Lawford and concluding with a reception at the Elizabeth Taylor Estate.
3) A retro exploration of foods from the 1950’s and 1960’s put on by Chef Jonny Vee with Victoria Price, daughter of Vincent Price.

Of course, the annual Modernism Show and Sale will be back at the Convention Center as a part of the opening weekend, February 12-14, and the classic car show returns later in the week. Amongst the new offerings will be a Vintage Fashion Show and a show of those archetypical silver bullet-shaped Airstream Trailers.

To read about all events and to purchase tickets, go to Modernism Week. It’s all très chic!

But back to the SI issue – to see Damaris Lewis and Genevieve Morton in a video as they pose atop several fighter planes brought out from the hangars just for this shoot, go to GIRLS AND PLANES, then scroll down to video.

We are so blessed here in the valley to have rain, while much of the country is literally digging out from several feet of snow. Yes, snow is pretty, but we do like the sun and the temperate clime that we enjoy here in Palm Springs almost daily year round. Right now it is 59 degrees. No shovels here. No drawers filled with wool scarves, gloves and mittens; no closets by the door with heavy coats and snow boots at the ready. Actually, when the rains first come each year, Dick and I have to dig out our umbrellas, as they’ve been in retirement for ten or eleven months!

We will likely see new snow on the distant peaks at higher elevations, when the skies clear. (Of course, to enjoy snow, one need only take a tram ride up to the mountains at 8500′, less than a half hour from the heart of the Village of Palm Springs.) To watch our weather, go to PALM SPRINGS WEATHER, click on Ten Day Forecast to see more.

It’s most likely that when the skies clear again, we will see a new blanket of snow on the mountains at  higher elevations. This spectacular view will be juxtaposed against palms and pools being enjoyed here on the desert floor.

Right now it’s fifty eight degrees which is, believe it or not, rather cold for us. What’s the temperature where you are today?

One part of the bill builds on provisions in the $787 billion stimulus package enacted last February, renewing the government’s $8000 tax credit for first-time home buyers through the first six months of 2010. The other part addresses the continuing high jobless rate with tax cuts for struggling businesses and provides another 14 weeks of benefits to all those out of work, whose benefits have been exhausted or will be exhausted by the end of the year.

The first-time homebuyer $8000 tax credit which was set to expire at the end of November will now be extended through the first six months of 2010; in order to qualify, buyers must sign a binding contract by the end of April. 2010.

For existing homeowners, this newly expanded program includes a $6500 credit for those who buy a new home after living in their present home for a minimum of five years.

To read more, go to articles in the Washington Post, the Associated Press, and the San Diego Union-Tribune.

We continue to be at, or near, historic low interest rates and have been for a long time. We continue to enjoy these artificially low rates because of various government actions taken to stimulate our economy. Wall Street has not been purchasing these mortgage loans because they want higher yields. So, the government has stepped in to buy them at the current low rates, and this is good. However, direct government intervention into the mortgage markets is expected eventually to end. The only question is – when?

Presently the government is purchasing most or all of the FANNIE MAE and FREDDIE MAC instruments at artificially low prices. Evidently, they have extended their buying of this mortgage paper until March of 2010 or thereabouts. What will happen when they stop buying is anyone’s guess. But one thing is absolutely sure. They will stop buying at some point and then interest rates will go up. Whether rates will go up 20 basis points, 40 basis points, or 1000 basis points is something no one can predict, but it’s something to think about.

At the point when the government stops the intervention, rates will go up, and this will be bad. As a borrower, you could lose big time, and at some level of mortgage interest rates, you might not qualify for your loan anymore, because your interest payments will be too high. So if you are a buyer waiting on the sidelines, looking for that perfect time to buy, you might just be there right now. I can predict with some certainty that there will be a bunch of folks who will be kicking themselves next year for not acting now. You have been warned!

I think we can agree that all across the US, it’s all about employment rebounding. Until more people have jobs and a greater degree of security, the broad market will be down, with average prices continuing to fall. In some areas like Detroit, Cleveland and other Rust Belt cities, it may be a decade or longer for real estate to recover.

Fortunately we are in Palm Springs. We continue to draw a broad constituency of buyers, who move here largely for our wonderful sunny weather and warm temperatures. Still, it’s true that bargain prices can be found here now, with average prices in the Greater Palm Springs area generally at levels not seen since 2003.

So the take home message is that I expect to see average prices continue to be under some downward pressure but not universally across all pricing segments or in all communities. It is clear to me that as this economic downturn continues, more and more home owners will be having to sell at a loss. Many potential home buyers reading this kind of forecast are understandably concerned that they may be buying into a falling market and therefore leaving money on the table. To those buyers, I say – evaluate the specifics of the local market you are considering and, by all means, work with a knowledgeable Realtor well versed in the particulars of that local market. There is little question that prices in some areas of the country will continue to fall, but the question is – will they fall substantially in your area of interest?

This route we were taking was famous long before interstates even existed. For us it was shorter, with little traffic, and it offered stunning panoramic views, especially when we descended into the valley where the small town of  Amboy is located. The valley floor shimmered like white water.  As we drove closer, we discovered that we were driving through fields of sodium chloride, drying in the sun. Amboy is basically a ghost town now. Located on Route 66, it was once thriving, but business literally died with the construction of I-10 in 1973. To make matters worse, the then owner of most of the town destroyed his buildings to avoid having to pay any tax on them. So not much remains other than the famous Roy’s Motel and Cafe with its landmark mid-century sign, along with a train stop for the Atlantic and Pacific Railroad.  A  mega-scary movie, The Hitcher, was filmed, in part, along the road through Amboy. If you are a fan of Rutger Hauer and like horror/thriller movies, this film is a must. It might be a good choice for viewing on Halloween night!

Now on the far side of Amboy, we were in the Mohave Desert, driving along a narrow desolate road. It was interesting to see black lava rock and the crater there that was once an active volcano.  As night fell, we were still in the middle of the Mohave Desert, really in the middle of nowhere; it was black, deserted and a little spooky. I felt relieved to reconnect to the interstate heading north for Glitter Gulch.

Once in Las Vegas, we had a blast attending the Elvis wedding. Our Elvis was tall and thin, had big side burns, a big Brill Creme pompadour, a suit all in black ornamented with studs and rhinestones, and finished off with a giant glittery low riding belt. He was sexy and fun. As he spoke the vows for them to repeat, he wove in the titles of most of Elvis’s songs. “And I promise never to step on your blue suede shoes….” We laughed the whole time. So if you are looking for a weekend away, we can certainly recommend both this drive to Las Vegas and the chance to have a really fun wedding once you get there.

We’re having bidding wars. You cannot find a decent home below $200K that doesn’t have multiple bidders after only a few days on the market. In the last four months or so, prices have been bid up, due to requests from the owners for “last and final” bid from their would-be buyers. This phenomenon is driven by the sellers having received multiple offers to purchase. Now, there is always the odd, overpriced, junky house in a horrible location that will just sit on the market, seemingly forever, until its price level descends to the value of the land, but this is the exception. Many of the REO’s now for sale are fine quality homes in decent locations. If an REO stays on the market for more then a few weeks in this market, there is probably something really wrong with it.

Cash Buyers are common. In addition to there being multiple bidders on these houses, another characteristic of this market is that most of the successful buyers are those paying cash. And, guess what? Cash wins every time, especially with the banks which, by the way, are the majority of sellers in this segment of the market. If you are bidding substantially below list price, don’t think that by your paying cash, that factor alone will give you the edge in coming in with the winning bid. Paying cash in this market has become the norm. And with such bargains attracting multiple buyers, the starting bid is usually list price.

Don’t be left out. If real estate investments in this price range are to play a part in your investment portfolio, and you have been waiting for the right time to make your move, that time is now. For more on the subject, please reference the recent MSN Money article, It’s Time to Invest.