TOWNSITEQuarterly

Florence hotelsWhat are the three greatest factors in determining the value of a home?Location, Location, Location. And Location is what weve got with our newoffice!

Weve taken possession of a prime spot between the Cinema Star MovieTheater complex and the ABC Childrens Center.

Over 15,000 people visit the theater each weekend.

The ABC Childrens Center has hundreds of visits each day.

We are the only Real Estate Company serving the North San Luis Rey Valley.

So, what does this mean for you? Exposure. If you decide to sell yourproperty, its advertising will be seen by thousands of people every week!

But one reason for our anticipated success stands out above all others.Service. We strive to provide the level of service that is required to bring yousatisfaction..

And Integrity. Im constantly amazed at how little value is placed uponthis commodity. Daily I run into people who are less than honest. And whenconfronted by the truth will not admit their fault. That is why Ive builttransaction systems that help expose the pitfalls that tend to make the homesales process a nightmare.

So, please stop by and say Hi. We want your feedback.

Tom Furrh

MarketAnalysis

The Market is a strange animal. The person who can accurately predict themarket will most certainly become wealthy in a considerably shorter time framethan the rest of us. Unfortunately, there is no magic way to figure out whenmarket conditions will change. There is only opinion.

However, the person who is willing to take the time to learn how to use sometools will have a better chance of buying low and selling high than theperson who depends upon gut instinct and/or advice of friends.

Lissabon hotelsMost analysis tools will fall into two categories, Fundamental and Technical.Technicals use statistical analysis on past data and project that informationinto the future. Fundamentals try to figure out what events that occur in thereal world cause changes. I have striven to use both.

In this and future issues of the Quarterly, I will apply my limited analysisabilities to the market and try to give you, my clients, some indication as towhat the future may hold.

9/11And The Real Estate Market:  A Fundamental Analysis

If you were anything at all like me, you took the remainder of that fatefulweek off and spent it primarily in front of the TV watching CNN or Fox News. Itthen took a week to get things back up to speed, then another week to catch up,and another to even begin to psycologically approach a sense of normalcy in mylife.

Most of the Realtors, escrow officers, loan agents and other industry supportpersonnell experienced the same thing. Some of this was just from dealing withthe shock of the event, but some of the delays were directly related to theattacks. When Wall Street shut down, the bond market also shut down. Mortgageinterest rates are

directly related to the bond market, so we were unable to get locks on manyof our government backed loans. Some clients decided to wait for the bondmarkets to open back up to see if they could get better rates.

Then, when Fed Chairman Greenspan announced more reductions in the overnightrates banks pay, more buyers decided to wait.

This all resulted in an almost immediate increase in the time homes spend onthe market. Yet even this indicator is sending mixed signals, because onlycertain types of homes were affected.

The hardest hit were high end homes, those priced over $500,000. I held anopen house at one of my high end listings on the Sunday one week after theattack. Not a single person showed up. But the day before I had a fairly decentshowing at one of my condos for sale. Further analysis of market times andnumber of homes for sale showed that high end business had nearly died, and isstill suffering.

Its hard to tell how long this will continue. We are now in the middle ofthe annual slow season. We normally see a slowdown in sales beginning in Octoberthat continues through February, and often into April. This period will also seea downturn in prices starting in December. But as I said, this is normal.The only question now is, how much will the events surrounding the attack effectthis decline?

One idea is that the real estate market will experience something similar tothe automobile market.

Immediately after the attack, auto makers saw a drastic decline in sales.They responded by offering slashed rates and huge rebates for new purchases.Then when consumers decided to get back into the market and purchase cars, therewas a large amount of penned-up demand, and suddenly auto sales picked upand exceeded normal amounts.

Sweden HotelsThis could happen to real estate. Rates are the lowest theyve been indecades, and with the glut of homes on the market now, we could see a huge surgein purchases come the Spring buying season.

The other possibilities are that we could go deeper into a recession and seea decline like the early 1990s. I dont think this is likely. For one, manyevents occurred in the early 90s that aggravated that recession, such as thegutting of our military and the resultant loss of San Diegos military supportindustry.

cheap hotels in AntwerpSan Diegos economy is now geared toward bio-tech, pharmaceuticals andcommunications. These industrys, while showing some signs of suffering, willcontinue to provide a rich economy for us.

We just need to get beyond the tragedy of the attack, get past our fear offuture attacks, and get on with rich, meaningful lives.

TechnicalAnalysis

ParkCircle at Whelan Ranch

Park Circle is a cozy 292 unit community of 2 and 3 bedroom Townhome stylecondominiums. The association has been doing a lot of work on the community, andit is looking really nice. Point Lobas Circle is the main street, with each ofthe branch streets lined with several 4 unit buildings. The center of the circleholds the common area pool, jacuzzi, rec room and play areas. All of the twobedroom units are 1104 square feet, with the full bath and both bedroomsupstairs and a half bath down. The utility room is at the end of the kitchen andopens into the attached one car garage. The sliding glass door off the diningarea opens into a small private yard.

There are three 3 bedroom models. The smallest, a single level downstairsunit with 1174 sq ft, and the 1193 sq ft single level all upstairs unit bothhave two bathrooms. The big 1299 sq ft has the same layout as the two bedroom,but has an additional bedroom upstairs. All the 1299 sq ft units have a 2 cargarage, and some of the smaller three bedroom units have a one car garage.Currently, the two bedroom units are selling for about $151000. The threebedrooms are selling for between $164,000 and $175,900.