This Month in Real Estate March 2011

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Monthly real estate newsletter with National news from Keller Williams Real Estate and local / regional news from Paul W. Drury. Also available on www.communityohio.com

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<ul><li>1.Commentary2 Released:TheNumbersThatDriveRealEstate h b h il 3March4,2011RecentGovernmentAction10TopicsforHomeBuyers,Sellers,andOwnersTopics for Home Buyers Sellers and Owners 13Broughttoyouby:KWResearch</li></ul><p>2. CommentaryGradualprogressinthehousingmarketcontinuesatasteadypacewithoutgovernmentsupport.ThemarkethasshownremarkableimprovementfromtheinitialdropaftertheexpirationofthehomebuyertaxcreditthispastJuly.Althoughhigherthannormaldistressedsalesskewtheoverallpictureofhomepricesdownward,inventorycontinuestoshrinkandsalescontinuetorise.Therockbottominterestratesof2010arelikelytotrendupward. Aseconomistsanticipateratesatorabove6%bytheendof2012,buyersaremovingoffthesidelinesandintothemarket.end of 2012 buyers are moving off the sidelines and into the marketAgoodsignforlongtermmarketstabilityisthatthemediandownpaymentonconventionalmortgageshasrisento22%,upfrom4%in2006andslightlyabovethe20%standardinthe1990s. g g%, p %g y%Thismaykeepbuyerslookinginslightlylowerpriceranges,butitisagoodsignoffuturesustainabilityforhomeownersandbanksalike.Therearestillampleopportunitiesforthosewhowouldlikedownpaymentsbelow20%,includingsomeconventionalmortgagesandthosebackedbytheFederalHousingAdministration,VeteransAffairs,andtheDepartmentofAgriculturesRuralDevelopmentH i Ad i i t tiV tAff i d th D t t f A i lt R l D ltloans.Astheeconomyimproves,stimuluseffortsbythegovernmentandtheFederalReserveBoardwillAs the economy improves stimulus efforts by the government and the Federal Reserve Board willgraduallywinddown,whichtypicallymeansrisinginterestrates.Meanwhile,buyerscontinuetobenefitfromhistoricallyfavorablebuyingconditionsandsellersareencouragedbyincreasedmarketstability.KWResearch2 3. HomeSales 4TheNumbersThatHomePrice 5 Inventory6 DriveRealEstate MortgageRates 8 Affordability9Broughttoyouby:KWResearch 4. HomeSales InMillions In MillionsTheincreasingtrendinexistinghomesalesactivitycontinuedthroughJanuary,andforthefirsttimey gyroseaboveyearagolevelswhenthehomebuyertaxcreditwasineffect.ThismarksthesixthmonthlyincreasesinceJulywhenthetaxcreditexpired,andindicatesarecoverythatsgainingafirmerfootingwithoutgovernmentsupport.ExtendedandExpandedHomeBuyerTaxCredit Second GradualRecoveryWithout RenewedNovember7,2009 TaxTaxCreditMusthavehadcontractsignedbyApril30,2010CreditMusthaveclosebyJune30,2010M h lb J 30 2010ExpiredJanuary1011January0910LatestDataRelease:February23,2011Source:NationalAssociationofRealtorsKWResearch4 5. HomePrice InThousands In Thousands HomepricessoftenedinJanuarywithmedianhomepricesdecreasingslightlyto$158,800 3.7% belowtheyearagolevel.Contributingtothisisalargershareofdistressedhomessales,which below the yearago level Contributing to this is a larger share of distressed homes sales which accountedfor37%ofsalesinJanuarycomparedto30%35%throughoutmuchof2010.Pricesand mortgageratesremainfavorableforbuyers. January1011LatestDataRelease:February23,2011Source:NationalAssociationofRealtors KWResearch5 6. Inventory Numberofhomesavailableforsale InMillions In MillionsHousinginventorycontinuestocontract.Therearenow3.38millionhomesonthemarket,down5.1%fromDecemberandonly3%aboveyearagolevels.Moreandmorebuyersaretaking5 1% from December and only 3% above yearago levels More and more buyers are takingadvantageoftodaysexceptionalaffordabilityconditions.Expectedimprovementsinlendingstandardsandjobgrowthwillcreategreatopportunitiesforbuyersandinvestors.January0910 January1011LatestDataRelease:February23,2011Source:NationalAssociationofRealtorsKWResearch6 7. SupplyofInventory InMonths In Months Theuptickinhomesalesandashrinkinginventorypareddownthemonthssupplyto7.6months, adecreaseof7.3%fromDecemberand1%fromyearagolevels.Thisisthelowestlevelinmore a decrease of 7 3% from December and 1% from yearago levels This is the lowest level in more thanayearandmarksthefirsttimesinceJulythatthemonthssupplyisbelowwhereitwasthe previousyear.Monthsofinventoryhasdeclinedsteadily(64%)fromitspeakof12.5monthsin Julyandisnowbacktopretaxcreditexpirationlevels.Thesupplyofinventoryisnotfarfroma sellersmarket,whichislessthan6monthssupply.January0910January 1011LatestDataRelease:February23,2011Source:NationalAssociationofRealtors KWResearch7 8. MortgageRates 30 YearFixed 30Year FixedMortgageratesjumpedabove5%forthefirsttimesinceApril2009inJanuary.Whileratesdippedj %,y ppgybacktojustbelow5%,theyareexpectedtocontinueanupwardtrendthroughouttheyear.Asoveralleconomicrecoveryremainsontrack,rateswilllikelyrisetokeepinflationincheck.Buyerswantingtocapturethesavingsinmonthlypaymentsthatahistoricallylowinterestrateaffordsareexpectedtotakeadvantageofexcellentbuyingconditions.Source:FreddieMacKWResearch8 9. ThepercentageofamedianfamilysincomerequiredAffordability tomakemortgagepaymentsonamedianpricedhomePercentageofIncomePercentage of IncomeHousingaffordabilityhitanewrecordinJanuary.Therelationshipbetweenmortgagerates,homeprices,andfamilyincomeisthemostfavorableonrecordforbuying.Thehomepricetoincomeratiocontinuestoremainwellbelowthehistoricalstandard.Stabilizinghomepricesandrisinginterestratesareexpectedtoreversetherecentaffordabilitytrend.AffordabilityasofJanuaryeveryyear.Calculationsassumea20%downpayment.KWResearch9Source:NationalAssociationofRealtors 10. Recent FHAtoIncreaseInsurancePremiums FHA to Increase Insurance Premiums 11GovernmentActionBroughttoyouby:KWResearch 11. FHAtoIncreaseInsurancePremiums TheFederalHousingAdministration(FHA)willbeincreasingmortgageinsurance p premiumsthatitsborrowerspayeachyearby0.25%startingApril18,2011. p yy y g p, LoansbackedbytheFHAcurrentlyaccountformorethanonethirdofallnewloans, upfromonly2%in2006.TheFHAhastakenseveralstepstostrengthenitsfinancial standingsinceSeptember2009,whenitindicatedthatreserveswouldfallbelowthe 2%minimum.MeasurestakeninJanuary2010includeraisingtheupfrontinsurance 2% minimum. Measures taken in January 2010 include raising the upfront insurance feesby0.5%,cappingsellercontributionstobuyersclosingcostsat3%,downfrom6%, andrequiringahigherdownpaymentforthosewithpoorcredit. AstheFHAremainsagreatoptionamongfirsttimehomebuyers,thosewithsmaller downpayments,andthosewithspottycredit,itsstrengthandcontinuedviabilityof down payments and those with spotty credit its strength and continued viability of FHAiskeytothehousingmarket.UpcomingchangestoFHAinsurancepremiumsalso meanthatbuyerswhoareoutlookingandwhointendtouseFHAfinancingwillwant tofinalizetheirdealandclosebeforeApril18.Sources: The Wall Street Journal, Bloomberg, Forbes KWResearch11 12. TopicsforHomeBuyers, py , PreparingtoSell 13 Sellers,andOwnersBroughttoyouby:KWResearch 13. PreparingtoSellPreparingyourhomeforsaleinabuyersmarketcanseemdaunting,butthesefivetipswillhelpyougetthebestpriceintheleastamountoftime.1. Organizingandcleaningiscrucialwhenpreppingahomeforsale.Potentialhomebuyershavea morepositivereactiontohomesthatareclutterfreeandgivethemthefeelingthatthehomeis movein ready move inready.2. Presalehomeinspectioncaninformyouofanytroubleareaswithinyourhomethatcanstand outtopotentialbuyers.Aninspectioncanalsohelpyoumakeanyrepairsnecessarybefore futureopenhouses.3. Determinereplacementestimatesbeforelistingyourhome,evenifyouarenotplanningon makingthereplacementsyourself.Thisinformationcanhelpbuyerstomakeinformeddecisions. making the replacements yourself This information can help buyers to make informed decisions4. Haveyourwarrantiesready especiallyforallthosehomeappliancesthatwillstaywithinthe homeafterthesale.5. Curbappealisacrucialfactorbecauseitdeterminesfirstimpressions.Anegativefirst impressioncancloudtheirentireopinionaboutthehome. KWResearch13 14. YourLocalMarketAlthoughitisimportanttostayinformedaboutwhatisgoingoninthenationalAlth h it i i t tt t i fd b t h tiii th ti leconomyandhousingmarket,manydifferentfactorsimpacttherealestatemarketinyourownarea.Talk to Paul W. Drury for assistance interpreting the conditions in your localmarket. The following graphs are general and covers most of the broadmarket area he serves. For detailed information about your ownneighborhood, call him or send him an email today.KWassociatesareequippedwiththeknowledgeandinformationtohelpyouKW associates are equipped with the knowledge and information to help younavigatethehomebuyingorsellingprocessinthischallengingmarket.KWResearch14 15. YourLocalMarketYour Local MarketKWResearch15 16. LocalMarketAbsorptionRateKWResearch16 17. NumberofHomesinplayKWResearch17 18. AvgPricepersqftKWResearch18 19. SoldtoListPriceComparison KWResearch19 20. AvgPriceForSaleVSSoldg KWResearch20 21. AboutKellerWilliamsRealtyFoundedin1983,KellerWilliamsRealty,Inc.,isaninternationalrealestatecompanywithmorethan80,000associatesand686officesacrosstheUnitedcompany with more than 80 000 associates and 686 offices across the UnitedStates andCanada.Thecompanybeganfranchisingin1991and,afteryearsofphenomenalgrowthandsuccess,becamethethirdlargestU.S.residentialrealestatefirmin2009.estate firm in 2009Thecompanyhassucceededbytreatingitsassociatesaspartnersandsharingitsknowledge,policycontrol,andcompanyprofitsonasystemwidebasis.Byfocusingonhelpingassociatesrealizetheirfullestpotential,KellerWilliamsRealtyisknownasanindustryleaderforitsfamilyculture,unmatchededucation,profit sharingbusinessmodel,phenomenalcoachingprograms,education profitsharing business model phenomenal coaching programsandtechnologyofferings. www.kw.com KWResearch21 22. AboutPaulW.Druryy OriginallylicensedasanagentinOhioin1986,PaulbeganwithLehmanJohnsonRealEstateinElyria.HeacquiredhisRealEstateLehman Johnson Real Estate in Elyria He acquired his Real EstateBrokerageLicensein1992andbecameanAssociatebrokerwithWestShoreRealty.In1995hemovedhisbrokeragelicensetoContinentalRealtyInvestmentwherehebegantofocusonadditionalworkwithRealty Investment where he began to focus on additional work withcommercialandinvestmentrealestate.DuringtheseyearshealsoperformedprofessionalappraisalswithTheAppraisalHouse. In2001hebeganDruryRealtyConsultingandworkedasanindependentRealEstateConsultantandworkedonhisownuntil2009whenhejoinedKellerWilliamsRealty,GreaterClevelandWest. Beingwhen he joined Keller Williams Realty Greater Cleveland West BeingapartoftheKellerfamilyprovidesmewithtoolsandservesunachievablestrictlyonmyown,providesmewiththetoolsandnetworkingofahugenationalnetwork,whilestillenablingmetowork,networking of a huge national network while still enabling me to workact,andfunctionasthemanagerofmyownbusiness.Itsthebestofbothworlds. Paul PaulsHomePageKWResearch22 23. Whatwehavetooffersellers Sellersnowhaveaccesstotoolsunimaginablejustafewyearsearlier.KellerWilliamsRealtydoesn tspendvaluableyears earlier Keller Williams Realty doesnt spend valuableresourcespromotingitsownname.Insteaditputsresourcesintothebesttoolsandresourcesforeducationandtraining,providingthehighestqualityrealestateprofessionalsintolocalcommunities. Properties put up for sale by Paul are also listed in KWLS aPropertiesputupforsalebyPaularealsolistedinKWLS,anationalMLS,implementedbyKellerWilliams,nowthe2ndlargestcompanyintheUS;localMLS;NEOHREX(NorthernOhioRealEstateExchange);andonnationalsitessuchasTrulia,Zillow,CyberHomes,andothers. Free Real Estate Informational Webinars available byFreeRealEstateInformationalWebinarsavailablebyloggingontothislinkhttp://budurl.com/druryvideos KWResearch23 24. Whatwehavetooffersellers(Contd) OthertoolsbroughttobearbyPaulincludebrandingusinguniquewebaddresseswithab di iib dd ithvirtualtourthatcanbeemailedorthelinkcanpostedanywhere,toincludeCraig sListandBackposted anywhere to include Craigs List and BackPage. http://www.listingpromoterohio.com/MyListings.aspx?pid=23771p //gp / ygp p http://www.communityohio.com/realestate.php NotPlanningtosellinthenearfuture? Wouldyoustillliketomonitorwhatishappeningin yourneighborhoodorarea? your neighborhood or area? ContactPaulnowforafreeperiodicmarketupdate.No cost.Noobligation. cost. No obligation. KWResearch24 25. Propertiescurrentlyforsaleope t es cu e t y o sa e Propertiescurrentlyforsale: 3307SandyLaneinAvon http://3307SandyLn.com 19593WhiteheadRoadinWellington http://19593whiteheadrd.com/ 13951DiagonalRoadinLagrange http://13951DiagonalRd.com 13951 Diagonal Road in Lagrange htt //13951DilRd 1GroverCourtinGrafton http://1groverct.com Wouldyouliketoseeoneofthesehomes?Clickonthelinkyforavisualtour. CheckoutourYouTubeChannelathttp://www.youtube.com/user/Mrpdruryh //b // d Wouldyoulikeyourhomeorpropertypromotedlikethese?th ? ContactPaulforafree,noobligation,consultationtoday at440 385 5650. at 4403855650 KWResearch25 26. Whatwehavetoofferbuyersy BuyersofRealEstatealsohaveaccesstotoolsunimaginablejustafewyearsbefore.SinceKellerWilliams i i bl j t fb fSi K ll Willidoesntspenditsmoneypromotingitsownname,itputsitsresourcesintoprovidingthebesttoolsandresourcestoits resources into providing the best tools and resources toitssystems,education,andtraining,thusprovidingthemostprofessionalrealestateteammembersbackintothecommunities. FreeRealEstateInformationalWebinarsavailablebyloggingontothislinkhttp://budurl.com/druryvideos IfyouwishtoconductyourownMultipleListingHomeSearches,youmaydosousingthislink.http://bit.ly/aDE5XPKWResearch26 27. Whatwehavetoofferbuyers(Contd) BuyerscanaccessPaulswebsiteatwww.druryrealty.comandconducttheirownsearchesaswellascreatetheirownand conduct their own searches as well as create their ownsearchprofilesforsearchingforpropertiesanywhereinOhio.IfrelocatingoutofOhio,KellerWilliamsoffersoneofthefinestrelocationreferralnetworksinthenation.GreaterClevelandWestnowsellsmorepropertiesthananyotherofficeintheentireregionalMLS.other office in the entire regional MLS Paulswebsiteiseasytomanageandhecansetupsearchprofilesforyousoyougetnotifiedatabout8:30amofanyprofiles for you so you get notified at about 8:30 am of anynewpropertiesthatcomeavailable.HealsohasprofilessetuponnationalwebsitessuchasTruliaprovidingforgreateraccesstosearchtools.www.communityohio.com KWResearch27 28. Investors&amp;Shoppers ForeclosureWatch pp Areyoushoppingforthedealofacenturyforyournewhome? h ? Areyouinthemarkettobuyahomeatasteepdiscountandtryandfixitupandflipit?dd dfd fl Areyoulookingforahomeforsomeoneelse? Wanttoknowwhatishappeninginyourmarketplace? y q SendPaulanemailtodayandrequestfreemarketupdatesatpaul@druryrealty.com CallPauldirectlyat4403855650. y Nocost.Nocommitments.Noobligations.Nofuss.No gkidding. KWResearch28 29. FollowPaulsRealEstateupdatesonline pHomeWebPage OnTwitterwww.druryrealty.com www.twitter.com/PaulWDruryOnZillow OnFaceBookOn FaceBookwww.zillow.com/profile/PaulWDrury www.facebook.com/paul.w.druryOnTruliaOn Trulia OnLinkedInOn LinkedInwww.trulia.com/profile/paulwdrury www.linkedin.com/in/paulwdruryOntheRealEstateGlobalO th R l E t t Gl b l FreeRealEstateFree Real EstateNetwork Webinarswww.realestateglobalnetwork.com/profile/PaulWDru ry http://budurl.com/druryvideosOnYouTubeSpecialDealLinkswww.youtube.com/user/MrPDrury www youtube com/user/MrPDrury http://bit.ly/ffvZOr KWResearch29 30. Paulsspecialvendordealsofthemonthp Nowadvertisingproperties,features,anddiscountson http://www.communityohio.com Featuringoutstandingdeal...</p>