this month in real estate april 2011

Brought to you by:

KW Research

Commentary 2

The Numbers That Drive Real Estate 3

Recent Government Action 9

Topics for Home Buyers, Sellers, and Owners 11

Released:

April 8, 2011

KW Research 2

Gradual and uneven progress in the housing market continues without government support. The market has shown remarkable improvement from the initial drop after the expiration of the home buyer tax credit this past July. Although higher‐than‐normal distressed sales skew the overall picture of home prices downward, inventory remains at pretax credit expiration levels. The rock‐bottom interest rates of 2010 are likely to trend upward. As economists anticipate rates at or above 6% by the end of 2012, buyers are moving off the sidelines and into the market.

Recent reports suggest the economy is picking up steam even though it is not yet fully reflected in the job market. In terms of economic growth, America outpaces all the other G7 nations except Canada. However, when it comes to adding back jobs, America is the weakest. During the recession, businesses looked for ways to increase efficiency and productivity. U.S. productivity, or output per worker, doubled in both of the past two years. A full housing recovery depends on growing employment. Without jobs, most Americans cannot buy new homes or afford their current ones. As the economy continues to pick up steam, employment will likely follow suit as there is a limited amount of productivity workers can provide.

While the economy improves, stimulus efforts by the government and the Federal Reserve Board will gradually wind down, which typically spurs rising interest rates. Meanwhile, buyers continue to benefit from historically favorable buying conditions and sellers are encouraged by increased market stability.

Commentary

Brought to you by:

KW Research

Home Sales 4

Home Price 5

Inventory 6

Mortgage Rates 8

Affordability 9

The Numbers That Drive Real Estate

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Tax Credit Expired

Latest Data Release: March 21, 2011Source: National Association of Realtors

Home SalesIn Millions

Although home sales have fallen 9.6% compared to the previous month, they remain close to last year’s levels, showing only a 2.8% decline. The unseasonably cold weather across much of the country during late January and February could have kept buyers indoors more so than normal.Gradual improvement with bumps along the way has long been the anticipated road to full recovery. In fact, home sales remain 26.4% above the low last July. As Lawrence Yun, chief economist of the National Association of Realtors, explains “month‐to‐month movements can be instructive, but in this uneven recovery, it’s important to look at the long‐term performance.”

Extended and Expanded Home Buyer Tax CreditMust have closed by June 30, 2010

Gradual Recovery Without Tax Credit

February

’10‐’11

February ’09‐’10

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Home PriceIn Thousands

Home prices continued to soften in January with median home prices decreasing to $156,100. This is 5.2% below the year‐ago level and brings the median price close to February 2002 levels. Two out of every five homes sold during February, or 40% of sales, were distressed properties. Distressed sales often sell for 10%�20% less than traditional home sales. The decline in home prices is less reflective of the value of individual homes and more reflective of the bargains that a record level of all cash buyers and investors are snapping up. Prices and mortgage rates remain favorable for buyers as the spring selling season starts.




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Supply of InventoryIn Months

The slowing of home sales and an increase in listings pushed the months’ supply up to 8.6 months, an increase of 15% from the previous month and 2% year over year. This is the third‐lowest level since June. Months of inventory remains 31% below its peak of 12.5 months in July and is now back to pretax credit expiration levels. With the summer selling season approaching quickly, experts anticipate more homes to go on the market in the coming months.




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Throughout the month, rates hovered in the 4.8%�4.9% range. After rising above 5% for the first time in about ten months in early February, rates have come back below but are expected to follow an upward trend throughout the year. As overall economic recovery remains on track, rates will likely rise to keep inflation in check. Buyers wanting to capture the savings in monthly payments that a historically low interest rate affords are expected to take advantage of excellent buying conditions.

Mortgage Rates30Year Fixed

Source: Freddie Mac

Type Rate

30‐Year Fixed 4.86%

15‐Year Fixed 4.09%

5/1 ARM 3.70%

Historical AverageHistorical Average 8.90%8.90%

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Affordability ‐Percentage of Income

Housing affordability continued at record levels in February. The relationship between mortgage rates, home prices, and family income is the most favorable on record for buying. The home price‐to‐income ratio continues to remain well below the historical standard. Stabilizing home prices and rising interest rates are expected to reverse the recent affordability trend.

Affordability as of February every year. Calculations assume a 20% down payment.

Source: National Association of Realtors

The percentage of a median family’s income required to make mortgage payments on a median‐priced home

Brought to you by:

KW Research

Recent Government Action

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Summit‐Level Solutions to Foreclosure Uncertainties

Five of the nation’s largest banks met in late March along with state and federal officials to discuss a

settlement that aims to correct questionable practices in the mortgage industry. Reaching an

agreement could resolve foreclosure procedure problems sparked during the robo‐signing scandal.

While most of the meeting focused on servicing standards, the hot topics of debate included reducing

loan balances, broad‐based write‐downs, and the extent to which legal claims will be dispelled.

The Obama administration is encouraging a quick settlement in order to prevent additional delays to

the housing market recovery. Their concern, according to RealtyTrac, Inc., is that “foreclosure filings

have decreased immensely in the past six months to the lowest level in three years in February.”

James Dimon, chief executive of JPMorgan Chase & Co, concurred, stating that, “Any settlement

should produce rational policies that work for the American public. That’s what we need.”

While tangible results have yet to be seen, the good news for homeowners, buyers, and sellers is that

all parties involved are taking steps in the right direction. Their focus is on a solid resolution to the

technical issues that are creating a bottleneck in the disposition of foreclosures — a prerequisite to

the recovery of the housing market.

Source: The Wall Street Journal

Brought to you by:

KW Research

Topics for Home Buyers, Sellers, and Owners

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Deciding to Buy

When first‐time home buyers decide they are ready to buy, it is essential for them to begin the process by carefully assessing their values, wants, and needs—both for the short and for the long term. This is a critical step since consultation sessions normally start with the buyers’ values. Afterward, buyers can explore their wants and needs, and once defined, determine actual criteria.

A recent study shows how important the following home‐buying factors were to buyers:1. List Price: 72%2. Location: 69%3. Neighborhood: 55%4. Floor Plan: 37%5. Square Footage: 28%6. Schools: 22%

By having the home‐buying criteria in mind before walking into a consultation, buyers are off to a better start when meeting with their real estate agent. The consultation allows buyers to fill in any missing gaps within their values, wants, and needs.

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Although it is important to stay informed about what is going on in the national economy and housing market, many different factors impact the real estate market in your own area.

Talk to Paul W. Drury for assistance interpreting the conditions in your local market. The following graphs are general and covers most of the broad market area he serves. For detailed information about your own neighborhood, call him or send him an email today.

KW associates are equipped with the knowledge and information to help you navigate the home‐buying or selling process in this challenging market.

Your Local Market

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Your Local Market

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Local Market Absorption Rate

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Number of Homes “in play”

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Avg Price per sq ft

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Sold to List Price Comparison

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Avg Price For Sale VS Sold

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About Keller Williams Realty

Founded in 1983, Keller Williams Realty, Inc., is an international real estate company with more than 80,000 associates and 686 offices across the United States and Canada. The company began franchising in 1991 and, after years of phenomenal growth and success, became the third‐largest U.S. residential real estate firm in 2009.

The company has succeeded by treating its associates as partners and sharing its knowledge, policy control, and company profits on a system wide basis.

By focusing on helping associates realize their fullest potential, Keller Williams Realty is known as an industry leader for its family culture, unmatched education, profit‐sharing business model, phenomenal coaching programs, and technology offerings.

www.kw.com

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About Paul W. Drury

• Originally licensed as an agent in Ohio in 1986, Paul began withLehman Johnson Real Estate in Elyria. He acquired his Real Estate Brokerage License in 1992 and became an Associate broker with West Shore Realty. In 1995 he moved his brokerage license to Continental Realty Investment where he began to focus on additional work with commercial and investment real estate. During these years he also performed professional appraisals with The Appraisal House.

• In 2001 he began Drury Realty Consulting and worked as an independent Real Estate Consultant and worked on his own until 2009 when he joined Keller Williams Realty, Greater Cleveland West. “Being a part of the Keller family provides me with tools and serves unachievable strictly on my own, provides me with the tools and networking of a huge national network, while still enabling me to work, act, and function as the manager of my own business. It’s the best of both worlds.” – Paul

• Paul's Home Page

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What we have to offer sellers

• Sellers now have access to tools unimaginable just a few years earlier. Keller Williams Realty doesn’t spend valuable resources promoting its own name. Instead it puts resources into the best tools and resources for education and training, providing the highest quality real estate professionals into local communities.

• Properties put up for sale by Paul are also listed in KWLS, a national MLS, implemented by Keller Williams, now the 2nd largest company in the US; local MLS; NEOHREX (Northern Ohio Real Estate Exchange); and on national sites such as Trulia, Zillow, CyberHomes, and others.

• Free Real Estate Informational Webinars available by logging onto this link… http://budurl.com/druryvideos

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What we have to offer sellers ( Cont’d)

• Other tools brought to bear by Paul include branding using unique web addresses with a virtual tour that can be emailed or the link can posted anywhere, to include Craig’s List and Back Page. – http://www.listingpromoterohio.com/MyListings.aspx?pid=23771– http://www.communityohio.com/realestate.php

• Not Planning to sell in the near future? – Would you still like to monitor what is happening in your neighborhood or area?

– Contact Paul now for a free periodic market update. No cost. No obligation.

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Properties currently for sale

• Properties currently for sale:– 3307 Sandy Lane in Avon – http://3307SandyLn.com– 19593 Whitehead Road in Wellington ‐ http://19593whiteheadrd.com/

– 13951 Diagonal Road in Lagrange – http://13951DiagonalRd.com– 230 Ohio Street in Elyria – http://230OhioSt.com

• Would you like to see one of these homes? Click on the link for a visual tour.

• Check out our YouTube Channel at http://www.youtube.com/user/Mrpdrury

• Would you like your home or property promoted like these?– Contact Paul for a free, no obligation, consultation today at 440‐385‐5650.

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What we have to offer buyers• Buyers of Real Estate also have access to tools

unimaginable just a few years before. Since Keller Williams doesn’t spend its money promoting its own name, it puts its resources into providing the best tools and resources to its systems, education, and training, thus providing the most professional real estate team members back into the communities.

• Free Real Estate Informational Webinars available by logging onto this link… http://budurl.com/druryvideos

• If you wish to conduct your own Multiple Listing Home Searches, you may do so using this link…. http://bit.ly/aDE5XP

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What we have to offer buyers (Cont’d)

• Buyers can access Paul’s website at www.druryrealty.comand conduct their own searches as well as create their own search profiles for searching for properties anywhere in Ohio. If relocating out of Ohio, Keller Williams offers one of the finest relocation referral networks in the nation. Greater Cleveland West now sells more properties than any other office in the entire regional MLS.

• Paul’s website is easy to manage and he can set up search profiles for you so you get notified at about 8:30 am of any new properties that come available. You can also see profiles set up on national websites such as Trulia providing for greater access to search tools.

• Everything we have we post on www.communityohio.com

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Investors & Shoppers – Foreclosure WatchInvestors• Are you shopping for the deal of a century for your new home?• Are you in the market to buy a home at a steep discount and try and fix it

up and “flip it”?• Are you looking for a home for someone else?• Find your next opportunity in our free updated foreclosed homes list

provided to you freely ‐ http://www.communityohio.com/realestate.php

Shoppers• Want to know what is happening in your marketplace?• Looking to watch a particular city or neighorhood?• Send Paul an email today and request free market and locatin updates at

[email protected]• Call Paul directly at 440‐385‐5650.

• No cost. No commitments. No obligations. No fuss. No drama. No kidding.

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Follow Paul’s Real Estate updates online…

Home Web Page• www.druryrealty.com

On Zillow• www.zillow.com/profile/PaulWDrury

On Trulia• www.trulia.com/profile/paulwdrury

On the Real Estate Global Network

• www.realestateglobalnetwork.com/profile/PaulWDrury

On YouTube• www.youtube.com/user/MrPDrury

On Twitter• ‐ www.twitter.com/PaulWDrury

On FaceBook• ‐ www.facebook.com/paul.w.drury

On LinkedIn• www.linkedin.com/in/paulwdrury

Free Real Estate Webinars• http://budurl.com/druryvideos

Special Discounts Links• http://bit.ly/ffvZOr

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Paul’s special vendor deals of the month…

Now advertising properties, features, and discounts on• http://www.communityohio.com• Featuring outstanding deals from the following vendors

• Amazon.com• GoDaddy Domain Sale• ESET Internet Security Software

• NewEgg Electronics Superstore

• E‐fax Electronic Fax Service

• TomTom GPS Poducts• DocuSign Electronic Document Service

• Franklin Covey Supplies• Intuit Quickbooks• Executive Book Summaries

• RubberMaid Products• Build my Move Moving Services

• eBatts discount battery services

• Bulb America Light Bulb Supplier

• Magazine Mall

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The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents, and other expert sources. You should not treat any opinion expressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

this month in real estate april 2011

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