Newsletter Jan 2011

Commentary 2

h b h i lReleased:

The Numbers That Drive Real Estate 3

Recent Government Action 10

Topics for Home Buyers Sellers and Owners 12

January 7, 2011

Topics for Home Buyers, Sellers, and Owners 12

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Commentary

The housing market is recovering. As more home buyers are taking advantage of the improved affordability conditions. With mortgage rates hovering around recent record p y g g glows and home prices having generally stabilized, economists are expecting an upward trend to a healthy and sustainable level in 2011.

Encouraging signs are showing up across the economy. Retail sales recently hit their highest level since before the recession. Key measures of small and big businesses’ optimism marched back up to prerecession levels and new claims for jobless benefits areoptimism marched back up to prerecession levels and new claims for jobless benefits are trending lower. Together they bode well for steady job creation and improved consumer confidence which is generally manifested in more spending.

As the economy improves, current stimulus efforts by the government and the Federal Reserve Board are expected to gradually wind down. Meanwhile, serious buyers stand to benefit from historically favorable buying conditionsbenefit from historically favorable buying conditions.

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Home Sales 4

Home Price 5The Numbers That Inventory 6

Mortgage Rates 8Drive Real EstateAffordability 9

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Home SalesIn MillionsIn Millions

Existing home sales resumed on an upward trend since bottoming in July. Sales activity rose to a seasonally adjusted annual rate of 4.68 million in November. This was up 22% from July and 5.6% y j p yabove the 4.43 million level in October, but remained 27.9% below the 6.49 million tax credit rush a year ago. As steady job creation is expected to continue, industry experts are hopeful for 2011.

FirstCredit Set to Expire

Extended and Expanded Home Buyer Tax CreditRenewed November 7

Must have contract signed by April 30M l b J 30

Second Tax

Credit Expired

Gradual Recovery WithoutTax Credit

Expire Nov 30

Must close by June 30 Expired

November ’08‐’09

KW Research 4Latest Data Release: December 22, 2010Source: National Association of Realtors

Home PriceIn ThousandsIn Thousands

Home prices continued to stabilize. Median home prices edged up slightly to $170,600, 0.4% above year‐ago levels Distressed homes have accounted for a fairly stable market share representingyear‐ago levels. Distressed homes have accounted for a fairly stable market share, representing 33% of sales in November. This is on par with the 34% in October and 33% in November 2009. Historically favorable interest rates, coupled with stable home prices, continue to offer advantageous buying opportunities .


Inventory ‐In Millions

Number of homes available for sale

In Millions

The number of homes on the market continued to decline. Total inventory fell to 3.71 million in November from 3 86 million in October This reflects the increasing response from buyers toNovember from 3.86 million in October. This reflects the increasing response from buyers to improved affordability conditions. As lending standards return to historical norms and consumers become more confident about their financial situation, more people will be able to buy their first home, move up, or invest.


Supply of InventoryIn MonthsIn Months

A steady increase in home sales and a shrinking inventory are cutting down the month’s supply to 9 5 This is one month down from October and one and a half months below last year While still9.5. This is one month down from October and one and a half months below last year. While still at a relatively high level, months of inventory has declined substantially since its peak of 12.5 months in July.


Mortgage Rates30‐Year Fixed

Mortgage rates are inching up but remain historically low. This trend continues to support home buying as it translates to significant savings for buyers. As overall economic recovery remains on

30 Year Fixed

buying as it translates to significant savings for buyers. As overall economic recovery remains on track, rates are expected to rise to keep inflation in check.

KW Research 8Source: Freddie Mac

Affordability ‐Percentage of Income

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

Percentage of Income

Housing affordability set a new record in November. 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 begin drawing affordability back up toward more normal levels.

KW Research 9Affordability as of November every year. Calculations assume a 20% down payment.Source: National Association of Realtors

Recent Tax Break Extended 11

Government ActionTax Break Extended 11

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Tax Break Extended‐President Obama signed an $858 billion tax bill into law on December 17, keeping income tax rates from increasing before the new year.

‐The legislation …

•Extends the Bush‐era income tax cuts on income, capital gains, and dividends for two years

•Reduces Social Security payroll tax rates by 2% for one year on income up to $106,800

•Extends jobless benefits for 13 months

•Allows businesses to write off 100% of capital investments between September 9, 2010 and December 31, 2011.

•Extends dozens of expired and expiring tax breaks, including a research and development tax credit and a college tuition tax credit that was created in last year’s economic stimulus law.

•Sets the estate tax rate at 35% for two years and would apply it only to estates worth more than $5 million. Under current law, the estate tax has lapsed for 2010 and is set to jump next year to 55%.

‐The tax cut is expected to put more money in the pockets of families most likely to spend it, help businesses to grow and as a result, spark demand, spur job creation, and strengthen the economy in 2011.

‐Many economists predict the tax package could increase the economic expansion rate by a substantial one percent next year.

KW Research 11Sources: wsj.com

Topics for Home Buyers, p y ,Sellers, and Owners

Use the Season to Your Home Selling Advantage 13

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Use the Season to Your Home‐Selling AdvantageWhile summer is generally known as the peak season for home sales activity, the winter can also offer great advantages for sellers – such as less competition from other sellers. With a little effort, you can use the season to your home selling advantageyour home-selling advantage.

Let’s put these ideas to work, so your home shows at its best. 1. Keep snow and ice at bay.

If h b ' i il h h ' ll Th k i lk d d i f fIf the buyer can't get in easily, the house won't sell. That means keeping walkways and driveways free of the frozen stuff. You want to make the home look well maintained.

2. Warm it up.Think warm, cozy, and homey. Before a buyer comes through, adjust the thermostat to a warmer temperature to make it welcoming. If you have a fireplace, turning it on right before the tour can create a more welcoming ambience.

3. Emphasize winter positives.Is your home on a bus route or some other vital service that means it's plowed or deiced regularly in bad

th ? B t ti th t t th bweather? Be sure to mention that to the buyers.4. Make it festive.

Even if you're not actually going to be present, greet your buyers as if they were going to be guests at a party. Set up the dinner table with the good china and silver. Have a plate of cookies for your guests, some warm cider, or even chilled bottles of water.

5. Use the season to your advantage.When the holidays are over, you can still use winter wreaths and dried arrangements around the door to spark interest. In the winter, with the leaves off the trees, you might also have a nice view that isn't as

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apparent in the spring and summer months.

Sources: msn.com

Your Local Market

Alth h it i i t t t t i f d b t h t i i i th ti lAlthough 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 areconditions 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 callFor 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.

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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 Soldg

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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 Unitedcompany 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 2009estate firm in 2009. The company has succeeded by treating its associates as partners and sharing its knowledge, policy control, and company profits on a systemwide 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 programseducation, profit sharing business model, phenomenal coaching programs, and technology offerings.

www.kw.com

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About Paul W. Druryy

• Originally licensed as an agent in Ohio in 1986, Paul began with Lehman Johnson Real Estate in Elyria He acquired his Real EstateLehman 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 withRealty 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 ClevelandWest “Beingwhen 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 worknetworking 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

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• Paul's Home Page

What we have to offer sellers

• Sellers now have access to tools unimaginable just a few years earlier Keller Williams Realty doesn’t spend valuableyears 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• 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• 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 i b dd ith i t l t th t bunique web addresses with a virtual tour that can be

emailed or the link can posted anywhere, to include Craig’s List and Back Page Recent listed homes soldList and Back Page. Recent listed homes sold.– 37101 Hunter’s Trail in Avon – http://37101hunterstrail.com– 2815 West River Road South in Elyria – http://2815WRiverRdS.com

• 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 NoContact Paul now for a free periodic market update. No cost. No obligation.

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Properties currently for saleope t es cu e t y o sa e

• 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.comg g g p // g– 1 Grover Court in Grafton – http://1groverct.com– 416 Winckles Street in Elyria – http://416wincklesst.com– 149 Woodview Drive in Elyria – http://149woodviewdrcom149 Woodview Drive in Elyria http://149woodviewdr.com

• Would you like to see one of these homes? Click on the link for a visual tour.Ch k P l’ Y T b Ch l• Check out Paul’s YouTube Channel at http://www.youtube.com/user/Mrpdrury

• Would you like your home or property promoted like• Would you like your home or property promoted like these?– Contact Paul for a free, no obligation, consultation today

440 385 5650KW Research 24

at 440‐385‐5650.

What we have to offer buyersy

• Buyers of Real Estate also have access to tools i i bl j t f b f Si K ll Williunimaginable 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 toits 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.comd d h i h ll h iand 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 ofOhio. 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• 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. He also has profiles set p p pup on national websites such as Trulia providing for greater access to search tools. http://bit.ly/aDE5XP

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p y

Investors & Shoppers – Foreclosure Watchpp

• Are you shopping for the deal of a century for your h ?new home?

• Are you in the market to buy a home at a steep d d d f d “fl ”discount and try and fix it up and “flip it”?

• Are you looking for a home for someone else?• Want to know what is happening in your marketplace?• Send Paul an email today and request free market y qupdates at [email protected]

• Call Paul directly at 440‐385‐5650.y• No cost. No commitments. No obligations. No fuss. No kidding.

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g

Follow Paul’s Real Estate updates online…p

Home Web Page On Twitter• www.druryrealty.com

On Zillow

• ‐ www.twitter.com/PaulWDrury

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

On Trulia

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

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

O th R l E t t Gl b l

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

Free Real EstateOn the Real Estate Global Network

• www.realestateglobalnetwork.com/profile/PaulWDrury

Free Real Estate Webinars

• http://budurl.com/druryvideosry

On YouTube• wwwyoutube com/user/MrPDrury

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

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• www.youtube.com/user/MrPDrury http://bit.ly/ffvZOr

Paul’s special vendor deals of the month…p

Paul’s Vendor’s Deal’s Page• http://bit.ly/ffvZOrhttp://bit.ly/ffvZOr• Featuring deals from the following vendors

• GoDaddy Domain Sale • Franklin Covey Suppliesy• ESET Internet Security Software

• NewEgg Electronics

• Intuit Quickbooks• Executive Book Summaries• NewEgg Electronics

Superstore• E‐fax Electronic Fax

Summaries• RubberMaid Products• Build my Move Moving

Service• TomTom GPS Poducts• DocuSign Electronic

y gServices

• eBatts discount battery services• DocuSign Electronic

Document Serviceservices

• Bulb America Light Bulb Supplier

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• Magazine Mall

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 on 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 foreducational 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 somedegree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on informationdegree 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.

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Newsletter Jan 2011

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