This Month in Real Estate July 2010

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A brief look at the US residential Real Estate Market and a snapshot of North Central Ohio

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  • 1.Commentary2 Released: TheNumbersThatDriveRealEstate3July7,2010 RecentGovernmentAction9 TopicsforHomeBuyers,Sellers,andOwners 11 Broughttoyouby: KWResearch

2. Commentary TheU.S.housingmarketcontinuestobenefitfromthetaxcredit: homepricesandsalesremain aboveyearagolevels.Asthesummerprogresses,however,thepositiveimpactofgovernment stimuluswillwinddown.Expertspointtoimprovedstabilityasasignthemarketcanlikelyholdits groundwithoutfurthersupportfromthegovernment.However,economistsindicatethatthekey forthehousingmarketthroughtheendof2010willbejobgrowthandamanageablelevelof distressedproperties.Theeconomycontinuesitsjourneytorecoverywithtwostepsforwardandonestepback,butthe groundlostduringtherecessionwasgreatandtheprogresssofarshouldbecelebrated.Theroad tothisparticularrecoveryhasbeenexpectedtobemoreprolongedthanmanypreviousrecovery periods.ConsumerconfidenceloweredfromitshighinMayprimarilyduetoadisappointing employmentreport,whiletheswellingfederaldeficithasalsoraisedconcern.Unmanageabledebt levelshaveleadsomeEuropeancountriesintotheircurrentsituation,andAmericansdonotwant tofollowsuit.Ajobbillthatwouldhavefurtherextendedunemploymentbenefitshasnotgottenofftheground duetoconcernsoverthedeficit.Sitedasatoppriorityforthegovernment,afinancialoverhaulbill continuestoproceedthoughCongress.Thebillsgoalistoprotectthefinancialsystemandthe averageconsumerfromunnecessaryriskandunsoundlendingpracticesinanefforttobuilda strongersystemforthelongtermstabilityoftheU.S.economy.KWResearch2 3. HomeSales 4TheNumbersThatHomePrice 5DriveRealEstateInventory6MortgageRates 7Affordability8Broughttoyouby: KWResearch 4. HomeSalesInMillions ExistinghomesalesslowedslightlyinMayto5.66million,down 2.2%fromAprilbutup19.2%fromlastMay.Thisistheeleventhconsecutivemonthofyearoveryearincrease.LawrenceYun,NARchiefeconomist,attributesthistotheongoingeffectsofthehomebuyertaxcredit, andheanticipatesthesamenextmonth.InMay,46%ofsaleswerefromfirsttimebuyers,downslightlyfromthepreviousmonths49%butstillconsideredhigh. ImpactofTax SeasonallyAdjustedHomeSales InMillionsCreditDeadline May0809 910May0 LatestDataRelease:June22,2010 Source:NationalAssociationofRealtors KWResearch4 5. HomePriceInThousands Themedianpriceforanexistinghomewas$179,600inMay,up2.8%fromayearagoand4.2%fromApril.Distressedhomes,accountingfor31%oflastmonthssales,continuedskewingpricesdownwardslightlyastheyareusuallydiscountedfromcomparablehomes.Overall,pricesthispastyearcontinuedtoshowincreasedstabilityoverthepreviousyear.VickiCoxGolder,presidentofNARstates,Withdistressedsalesatroughlythesamelevelasayearago,thegaininhomepricesisahopefulsignthatthemarketisinagoodpositiontostandonitsownwithoutfurthergovernmentstimulus.09IncreasedHomePrice InThousands 08May Stability0 9 1 0 May LatestDataRelease:June22,2010 Source:NationalAssociationofRealtorsKWResearch5 6. Inventory NumberofhomesavailableforsaleInMillions Totalhousinginventorydeclinedslightlyto4.89millioninMay,representingbetweeneightandeightandahalfmonthsupplyofsales(ifhomescontinuetosellatthecurrentpaceconsistentlyandnonewonescomeonthemarket).Thereareaboutthesamenumberofhomesforsaleaslastyear,with1%morecurrentlyavailable.Althoughtherecontinuestobeaniceselectionofavailablehomesforbuyers,the3.4%fewernumberfromlastmonthhelpstofurtherstabilizeprices. Aboutthe sameasMay0809 lastyear May0910Numberofhomesavailableforsale InMillions LatestDataRelease:June22,2010 Source:NationalAssociationofRealtors KWResearch6 7. MortgageRates30YearFixedMortgageratesfelltoanewrecordlowinJuneamidadropinconsumerconfidence concerningtherecovery.ThetoneoftheFederalReserveslatestmeetingwasnotably temperedontheoutlookforrecovery,indicatingthattheeconomyisstrongerthanlast yearbutthereisstillmuchgroundtocover.Interestratessignificantlybelow5%may piquetheinterestofmoreinvestors. ThirtyYearAverage 8.9% Average Weekly Mortgage Rates12%dropsinceApril8 OneYearAverage 5.0% Source:FreddieMac KWResearch7 8. AffordabilityThepercentageofamedianfamilysincomerequiredtomakemortgagepaymentsonamedianpriced PercentageofIncomehomeAffordabilityremainsadvantageous,supportedbythelowestmortgagerates indecadesaswellasloweredhomeprices.Thehomepricetoincomeratio continuestoremainwellbelowthehistoricalaverageof25%,butstabilized homepricesaredrawingaffordabilitybackuptowardmorenormal levels.The rationowstandsat15.4%. HistoricalStandard:25% AffordabilityasofMayeveryyear.Calculationsassumea20%downpayment. KWResearch8 Source:NationalAssociationofRealtors 9. Recent TaxCreditsClosing10GovernmentActionDeadlineExtended Broughttoyouby: KWResearch 10. TaxCreditsClosingDeadlineExtendedHomebuyerswhosignedacontractbeforetheend ofAprilwillnowhavethreeadditionalmonthsto closeandstillbeeligibleforthehomebuyertax credit.AbilltoextendthedeadlinetoSeptember 30obtainedcongressionalapprovalonJune30,the eveningitwassettoexpire.Manyofthesebuyersarepurchasingshortsales whichhavenotablyslowercontracttoclosetime frames.AKWResearchstudyfoundshortsales oftentaketwiceaslongtocloseastypicalhome sales.Whilethisdoesnotextendthecredittoany additionalbuyers,itisgreatnewsforthose180,000 whohavenotyetclosedontheirhomesale throughnofaultoftheirown. Sources: The Wall Street Journal, KW ResearchKWResearch10 11. TopicsforHome Buyers,Sellers,and RealEstateInvesting 12OwnersBroughttoyouby: KWResearch 12. RealEstateInvesting Theincreasedaffordabilityandlowinterestratesmayhavesome thinkingaboutpurchasingrealestate investmentproperties.HereareafewkeypointsoninvestingfromTheMillionaireRealEstate Investor: Criteria:Criteriaarethestandardsthatdefinewhatkindofproperty Therearesomegreatterms youarelookingfor.Thesearethethingsthatyoulistwhenyou arerightnowwithrecordlow huntingforthenextopportunitytoinvestin:Isitasinglefamilyormulti interestratesand familyopportunity?Whatfeaturesoramenitiesdoesithave?Whatis discounteddistressed properties.Keepinmind thelocation?Theseareaspectsofthepropertythatcantbenegotiated. thatthelendingforinvestmentpropertieshas Terms:Thisishowyouturnyouropportunityintoagooddeal.Onceadditionalrequirements likecashreservesandtotal thepropertymeetsyourcriteria,termsarethenegotiableaspectsof propertylimits.Talktoa yourinvestment,suchastheofferprice,thedownpayment,interestprofessionalformore rates,occupancydate,andclosingcosts.Termsarewhereagreatdeal information. canbecreatedfromeventhemostmodestcriteria.Theymean understandingthefinancialbasicsofatransaction,knowingwhich elementsareflexible,beingsystematicaboutgettingallyoucanfrom everydeal,andalso,forsome,knowingwhentowalkaway. Network:thepeoplewhohelpyoufind,complete,andsupportyour realestateinvestments.Havequestionsorwanttolearnmoreaboutinvestmentopportunitiesinyourlocalarea?KWResearch12JustaskyourlocalKellerWilliamsassociate! 13. YourLocalMarketAlthoughitisimportanttostayinformedaboutwhatisgoingon inthenational economyandhousingmarket,manydifferentfactorsimpacttherealestate marketinyourownarea. TalktoyourKWassociateforassistanceinterpretingtheconditionsinyourlocalmarket.KWassociatesareequippedwiththeknowledgeandinformationto helpyou navigatethroughthehomebuyingorsellingprocessinthischallengingmarket.KWResearch13 14. LocalMarketAbsorptionRate KWResearch14 15. NumberofHomesinplayKWResearch15 16. Avg Pricepersqft KWResearch16 17. SoldtoListPriceComparison KWResearch17 18. Avg PriceForSaleVSSold KWResearch18 19. AboutKellerWilliamsRealty Foundedin1983,KellerWilliamsRealty,Inc.,isaninternationalrealestate companywithmorethan77,000associatesand677officesacrosstheUnited States andCanada.Thecompanybeganfranchisingin1991and,afteryearsof phenomenalgrowthandsuccess,becamethethirdlargestU.S.residentialreal estatefirmin2009. Thecompanyhassucceededbytreatingitsassociatesaspartners andsharing itsknowledge,policycontrol,andcompanyprofitsonasystemwidebasis. Byfocusingonhelpingassociatesrealizetheirfullestpotential,KellerWilliams Realtyisknownasanindustryleaderinitsfamilyculture,unmatched education,profitsharingbusinessmodel,phenomenalcoachingprogram,and technologyofferings.www.kw.comKWResearch19 20. AboutPaulW.Drury OriginallylicensedasanagentinOhioin1986,Paulbeganwith LehmanJohnsonRealEstateinElyria.HeacquiredhisRealEstate BrokerageLicensein1992andbecameanAssociatebrokerwithWest ShoreRealty.In1995hemovedhisbrokeragelicensetoContinental RealtyInvestmentwherehebegantofocusonadditionalworkwith commercialandinvestmentrealestate.Duringtheseyearshealso performedprofessionalappraisalswithTheAppraisalHouse. In2001hebeganDruryRealtyConsultingandworkedasan independentRealEstateConsultantandworkedonhisownuntil2009 whenhejoinedKellerWilliamsRealty,GreaterClevelandWest.Being apartoftheKellerfamilyprovidesmewithtoolsandserves unachievablestrictlyonmyown,providesmewiththetoolsand networkingofahugenationalnetwork,whilestillenablingmeto work,act,andfunctionasthemanagerofmyownbusiness.Itsthe bestofbothworlds. Paul Paul'sHomePageKWResearch20 21. Whatwehavetooffersellers Sellersnowhaveaccesstotoolsunimaginablejustafew yearsearlier.KellerWilliamsRealtydoesntspend valuableresourcespromotingitsownname.Insteaditputs resourcesintothebesttoolsandresourcesforeducation andtraining,providingthehighestqualityrealestate professionalsintolocalcommunities. PropertiesputupforsalebyPaularealsolistedinKWLS,a nationalMLS,implementedbyKellerWilliamsthethird largestcompanyintheUS;localMLS;NEOHREX(Northern OhioRealEstateExchange);andonnationalsitessuchas Trulia,Zillow,CyberHomes,andothers. KWResearch21 22. Whatwehavetooffersellers(Contd) OthertoolsbroughttobearbyPaulincludebrandingusing uniquewebaddresseswithavirtualtourthatcanbe emailedorthelinkcanpostedanywhere,toincludeCraigs ListandBackPage.Examplesofpropertiessoldrecently usingthismethodinclude: 947GulfRoadinElyria (soldin28days)http://947gulfroad.com/ 359GayleDriveinSheffieldLake(soldin57days)http://359gayledrive.com/ 327GayleDriveinSheffieldLake (soldin18days)http://327gayledr.com/ 810SandalwoodDriveinElyria (Soldin19days)http://810sandalwooddr.com/ NotPlanningtosellinthenearfuture? Wouldyoustillliketomonitorwhatishappeninginyourneighborhoodorarea? ContactPaulnowforafreeperiodicmarketupdate.Nocost.Noobligation.KWResearch22 23. Propertiescurrentlyforsale Propertiescurrentlyforsale: 37101HuntersTrailinAvon http://37101hunterstrail.com/ 4435PorterRoadinNorthOlmsted http://4435porterroad.com/ 19593WhiteheadRoadinWellington http://19593whiteheadrd.com/ 1GroverCourtinGrafton http://1groverct.com 416Winckles StreetinElyria http://416wincklesst.com 149Woodview DriveinElyria http://149woodviewdr.com 2815WestRiverRdSouthinElyria http://2815wriverrds.com Wouldyouliketoseeoneofthesehomes?Clickonthelink foratour. Wouldyoulikeyourhomeorpropertypromotedlike these? ContactPaulforafree,noobligation,consultationtodayat4403855650.KWResearch23 24. Whatwehavetoofferbuyers BuyersofRealEstatealsohaveaccesstotools unimaginablejustafewyearsbefore.SinceKellerWilliams doesntspenditsmoneypromotingitsownname,itputs itsresourcesintoprovidingthebesttoolsandresourcesto itssystems,education,andtraining,thusprovidingthe mostprofessionalrealestateteammembersbackintothe communities. Paulisavailablemosthoursofthedaydirectlywithout havingtospeakwithassistantsandhemonitorshisemail regularly. KWResearch24 25. Whatwehavetoofferbuyers(Contd) BuyerscanaccessPaulswebsiteatwww.druryrealty.com andconducttheirownsearchesaswellascreatetheirown searchprofilesforsearchingforpropertiesanywherein Ohio.IfrelocatingoutofOhio,KellerWilliamsoffersoneof thefinestrelocationreferralnetworksinthenation.While wemaynotbethebiggestfirminNorthernOhioyet,we areinmanyareasofthenationalalready. Paulswebsiteiseasytomanageandhecansetupsearch profilesforyousoyougetnotifiedatabout8:30amofany newpropertiesthatcomeavailable.Healsohasprofilesset uponnationalwebsitessuchasTruliaprovidingfor greateraccesstosearchtools. KWResearch25 26. Investors&Shoppers ForeclosureWatch Areyoushoppingforthedealofacenturyforyour newhome? Areyouinthemarkettobuyahomeatasteep discountandtryandfixitupandflipit? Areyoulookingforahomeforsomeoneelse? Wanttoknowwhatishappeninginyourmarketplace? SendPaulanemailtodayandrequestfreemarket updatesatpaul@druryrealty.com CallPauldirectlyat4403855650. Nocost.Nocommitments.Noobligations.Nofuss.No kidding. KWResearch26 27. FollowPaulonlineHomeWebPageOnTwitter www.druryrealty.com www.twitter.com/PaulWDruryOnZillowOnFaceBook www.zillow.com/profile/PaulWDrury www.facebook.com/paul.w.druryOnTruliaOnLinkedIn www.linkedin.com/in/paulwdrury www.trulia.com/profile/paulwdrury OntheRealEstateGlobal Network www.realestateglobalnetwork.com/profile/PaulWDruryKWResearch27