The market behaved true to form AGAIN this spring. We had an increase in pricing of over ten percent. Many sellers now want ten percent more. It is not there. Take into consideration the above statistics and the result is that pricing will remain flat for the rest of the year. There are still more buyers than sellers. This excess demand does not drive pricing up as it is limited by the buyers' ability to pay. If you add the increase in the cost of money and a general increase in prices, income is having a hard time keeping up. This is not doom and gloom. It presents, for the first time, a level playing field for all. Sellers get solid sales prices yet buyers are not forced to pay what feels excessive. This should remain so for the foreseeable future.

OUR OWN PRACTICE. I always use this as a gauge. We have sold 25 homes (one a week as usual) in the first 6 months of this year and our sales dollar volume is equal to that of last year. Thus, plenty of business yet flat pricing.
Small prediction: flat pricing until January of next year and then a 7 to 10 percent jump again in the first quarter.

Life in the office: Everyone (Duncan, Jaime, Jean and I) has been working, working, working. Thus we all took a short break. Jean has patiently encouraged me to experience my cycling adventure in Italy. Now we are off together for several small adventures, including a week in the forests and lakes of northern Michigan and a visit to our nation's capital to broaden our minds at the Smithsonian later this fall.

At the year's midpoint we are halfway through our regular pattern in the real estate market. Prices had their usual early year "bump" although the increase this year was smaller than that of the past 2 years.
Our transaction volume has remained very steady but the overall volume in the market has dropped by about 20% from the record levels of 2005. These two trends have generated a great deal of press predicting that "the Sky is Falling" in the real estate market.
These reports are not an accurate portrayal of what is happening "in the trenches", particularly when it comes to Palo Alto. Well located properties that are in good condition and have been priced in line with recent sales (rather than optimistically trying to lead the market higher) are attracting strong buyer interest. This makes it still challenging for buyers, and ensures that sellers must be careful with pricing and presentation of their properties.
The market is approaching balance.
In the world of Mia & Duncan, our lives continue with great excitement. My burgeoning running career has my 10k time down to 43:11 and my enthusiasm for the sport is unwavering. Sunny afternoons cruising the trails of the Santa Cruz Mountains, Rancho San Antonio and the Arastradero Preserve are good for the soul. Ah, the benefits of where we all live!
Our regular travel continues and with Australia only a short 13 hour flight away (it's a direct flight from SFO to Sydney, it's really not that far!) we enjoyed two trips back to the great Southern Land in the first half of 2006 to witness two of our best friends getting married.
Mia continues to dedicate herself to the Creative Commons cause (www.creativecommons.org). The highlight of the year so far was their international conference in Rio De Janeiro, Brazil where 300 copyright enthusiasts got together to discuss the future of the ownership of ideas. I am glad that there are people out there spending the time to think through these issues. Mia & I often remark that we can't imagine another place in the world where we would have the opportunity to live our lives as we are today.

2006 has brought many exciting new adventures for me! In May, I celebrated my one year anniversary with Brendan, Duncan and Jean and I am still going strong…
This year seems to be moving along rather quickly, but I have been able to take quite a few weekend excursions with my boyfriend Greg-including a trip to the Vision Quest Safari Bed & Breakfast in Salinas-where an elephant brought breakfast to the balcony of our private bungalow!
After spending Memorial Day in Sacramento, I am now in the market for a new mountain bike. (I hadn't ridden one since I was a child!) After riding 12 miles around Folsom Lake, I learned that the sport is probably much better enjoyed with the proper equipment. I know Brendan is looking forward to helping me pursue my new weekend activity!
Greg and I spent the 4th of July in Lake Tahoe. We went rafting on the Truckee River, at a nice, leisurely pace of about 5 miles in 3 hours. The weather was perfect and we had a good time relaxing with our friends. We are also planning a trip to Waikiki, Hawaii in September, so it'll be nice to unwind after the summertime.
I learned a lot about the "different hats" that Brendan and Duncan wear while they were away on their vacations. Each day continues to be a challenge, but I feel that I am coming into my own and am still enjoying the ride.