this month in real estate - sept 2011
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DESCRIPTIONThis Month in Real Estate, September 2001, is brought to you by Paul W. Drury, Real Estate Broker with Keller Williams Realty Greater Cleveland West. It is a collection of national news, information, and statistics as well as information specific to the North Central Ohio Region between Lakewood and Sandusky and south to the Lodi / Ashland Area.
- 1. Commentary2 Released: The Numbers That Drive Real Estate3September 2011 Topics for Home Buyers, Sellers, and Owners 8Broughttoyouby:KWResearch
2. CommentaryThe U.S. housing market has shown notable stability in 2011 compared to the previous twoyears when the tax credit made a clear impact. Although recent economic indicators havebeen less than expected, including a downward revision of GDP and consumer confidence p , gthat mirrors early 2009, owning a home is still valued by the majority of Americans. 72% ofrenters say owning is a top priority for their future, up from 68% a year earlier.However, most aspiring homeowners are held back by two main factors: funds for a downpayment (82%) and confidence in their job security (80%). Federal Reserve Chair BenBernanke emphasized the importance of a healthy housing market to a robust recovery. Hestressed the adverse effects of tighter credit conditions for borrowers, urging Congress toborrowerstake tax and policy measures to help stabilize the market. He also noted the significance ofaddressing long-term fiscal policies including debt levels, upcoming expenses to support anaging population, and taxes.Buyers continue to benefit from historically favorable buying conditions, and sellers areencouraged by increased market stability. Although the Fed made a commitment to keep itsinterest rate at the current level until mid-2013, mortgage rates can, and often do, stillfluctuate. In the midst of these reports, it is important to keep in mind the path to recoverywas always expected to be a long and uneven road. As we progress toward a strongerrecovery,recovery economic improvement typically spurs rising interest rates in order to keepinflation in line.Sources: National Association of Realtors, Bloomberg, The Wall Street Journal KWResearch2 3. Home Sales4The Numbers ThatHome Price5Drive Real Estate Supply of InventoryMortgage Ratesg g67Broughttoyouby:KWResearch 4. Home SalesIn MillionsHome sales in July were up by 21% from the same month last year when the expiration of thetax credit resulted in a significant drop in sales. However, they were down 3.5% compared toJune. This could be due in part to NARs report that 16% of members experienced a contractfailure from issues in underwriting and appraisals during July. NAR President Ron Phippsstates, For both mortgage credit and home appraisals, theres been a parallel pendulum swingfrom very loose standards which led to the housing boom to unnecessarily restrictive practicesstandards, boom,as an overreaction to the housing correction. Original Tax CreditScheduled to Expire Expanded Tax C dit T CreditExpiredLatest Data Release: August 18, 2011Source: National Association of RealtorsKWResearch4 5. Home PriceIn ThousandsHome prices dipped by less than 1% in July with median home price at $174,000. This is 4.5%below the year-ago level which followed a strong spring season of sales driven by the taxcredit. Median home prices remain close to 20022003 levels. Distressed sales continue tocount for almost 1 in 3 homes sold. The combination of low prices and record-breaking lowinterest rates means that home affordability is extremely favorable.Latest Data Release: August 18, 2011Source: National Association of RealtorsKWResearch5 6. Supply of InventoryIn MonthsThe supply of homes measured in months on the market at their current pace of saleswas up slightly during July compared to June This is in keeping with historical trends June.trends,which show that inventory levels typically rise during the summer months. The monthssupply remained 25% below the peak of 12.5 months in July 2010 and 13% above Aprilof 2010 when the home buyer tax credit was in full swing. TaxCredit ExpiredLatest Data Release: August 18, 2011Source: National Association of RealtorsKWResearch6 7. Mortgage Rates30 Year30-Year FixedMortgage rates hit a new record low in August of 4.15%, primarily due to uncertainty in theglobal and domestic economies. While these incredible rates represent a significant savingsfor home buyers, experts note that for the benefits to be fully realized, lending conditionsmust loosen to enable more buyers to take advantage of them. As overall economic activitygets back on track, rates will likely rise to keep inflation in check. In other words, the windowof opportunity for buyers to lock in these historically lf t it f bt l k i th hi t i ll low i tinterest rates will not l t f t till t last forever. TypeRate 30-Year Fixed4.22% 15-Year Fixed5 eaed3 39%3.39% 5/1 ARM2.96% Historical Average 8.90%Source: Freddie Mac; September 1, 2011 KWResearch7 8. Topics for Home Buyers, Sellers,py , , and OwnersBroughttoyouby:KWResearch 9. Home Updates As the weather gets cooler, some homeowners could be considering undertaking home renovations or updates before the holiday season. Here are a few findings about updates and home sales: Homeowners typically spend considerably more on updates to their home when planning to live in and enjoy it with an average of nearly $9 000it,$9,000. In contrast, they only spend an average of $3,400 when making updates in preparation to sell. The most common updates sellers performed before listing were paint, flooring, and light fixtures. Although the majority of buyers were least likely to compromise on the location, 16% were least likely to compromise on updates. 75% of homes sold were either f% f fairly updated or very updated. Sellers began repairing their home 1 to 8 weeks in advance of listing.Source: KW ResearchKWResearch9 10. National Stats Existing Home Salesg KWResearch10 11. National Stats Unemployment Rate p y KWResearch11 12. National Stats Consumer Confidence KWResearch12 13. National Stats Consumer Borrowingg KWResearch13 14. National Stats Regulator Hiring Boom ggKWResearch14 15. National Stats Construction Spending p gKWResearch15 16. National Stats Housing Supply g pp yKWResearch16 17. National Stats Housing Starts gKWResearch17 18. National Stats New Home SalesKWResearch18 19. Your Local MarketAlthough it i iAlthh is important t stay i f t t to t informed about what i going on i th d b t h t is i in thenational economy and housing market, many different factors impact theyour real estate market.Talk to Paul W. Drury for assistance interpreting the conditions in the NorthCentral Ohio Regional market. The following graphs are general and coversome of the broader market area he serves. For detailed information aboutyour own neighborhood, call him or send him an email today.KW associates are equipped with the knowledge and information to helpyou navigate the home-buying or selling process in this challengingmarket. k t KWResearch19 20. YourLocalRealEstateMarketYour Local Real Estate MarketKWResearch20 21. Local Market Absorption RateKWResearch21 22. Number of Homes in playKWResearch22 23. Avg Price p sq ftg per qKWResearch23 24. Sold to List Price Comparisonp KWResearch24 25. Avg Price For Sale VS SoldKWResearch25 26. Investors&Shoppers ForeclosureWatch pp NORTHCENTRALOHIOREALESTATEOPPORTUNITIES!Investors Areyoushoppingforthedealofacenturyforyournewhome? Areyouinthemarkettobuyahomeatasteepdiscountandtryandfixitupand flipit? AAreyoulookingforahomeforsomeoneelse?l ki fh fl ? Findyournextopportunityinourupdatedforeclosedhomeslist (http://bit.ly/mYYbIq) The link is also available on http://www communityohio com/realestate php Thelinkisalsoavailableonhttp://www.communityohio.com/realestate.phpShoppers Want to know what is happening in your marketplace? Wanttoknowwhatishappeninginyourmarketplace? Lookingtowatchaparticularcityorneighborhood?CheckoutourForeclosure Map(http://bit.ly/qc7pZv). SendPaulanemailtodayandrequestfreemarketandlocationupdatesat email@example.com@dl CallPauldirectlyat4403855650. Nocost.Nocommitments.Noobligations.Nofuss.Nodrama.Nokidding.N t N it t N bli tiN fN d N kiddiKWResearch26 27. About Keller Williams RealtyFounded in 1983, Keller Williams Realty is an international real estate companywith more than 80,000 associates and 686 offices across th U it d St t andith th 80 000 i tdffithe United States dCanada. The company began franchising in 1991 and, after years of phenomenalgrowth and success, became the second-largest U.S. residential real estate firmin 2010.Keller Williams Realty has succeeded by treating its associates as partners andsharing its knowledge, p gg policy control, and company py p y profits on a systemwide basis.yBy focusing on helping associates realize their fullest potential, Keller WilliamsRealty is known as an industry leader for its family culture, unmatched education,profit sharingprofit-sharing business model, phenomenal coaching programs and technologymodel programs,offerings. www.kw.com KWResearch27 28. 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 PaulsHomePage http://www.druryrealty.comKWResearch28 29. Whatwehavetooffersellers Sellersnowhaveacces