Your SlideShare is downloading. ×
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
This Month in Real Estate - January 2010
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

This Month in Real Estate - January 2010

222

Published on

This Month in Real Estate - January 2010. US Edition. A nationwide wrap up of the current events and news updates involving real estate in the US

This Month in Real Estate - January 2010. US Edition. A nationwide wrap up of the current events and news updates involving real estate in the US

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
222
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Commentary 2 Released: The Numbers That Drive Real Estate 3 January 8, 2010 Recent Government Action 9 Topics for Buyers and Sellers 15 Brought to you by: KW Research
  • 2. Commentary December closed out the year with further indications of a budding recovery, illustrating we’ve come far from the pessimistic outlook this time last year. Soft home prices, affordable financing conditions as well as the government’s tax break targeted at the housing market have contributed to providing the much needed boost to the housing market. Solid gains in home sale activity helps to pare down inventory to a healthier level, which in turn will likely bring more stability to home prices. The most recent Federal Reserve meeting indicated a more positive outlook about our economic condition as they pointed to plans to reel in emergency programs. Mortgage rates, which have hovered around 5 percent for most of 2009, are starting to climb again. Economists expect these unprecedented rates to go back up as Fed’s program to purchase mortgage- backed securities expires in March and private investors are demanding higher returns. According to Nar 2009 President Charles McMillan, “Even with price declines in recent years, the typical home seller saw their equity increase 27 percent.” NAR’s most recent Home Buyers and Sellers survey reported that 87 percent of survey respondents consider their home a good investment, and more than half see it as a better investment than stocks. This indicates that Americans still see homeownership as a source of steady long-term wealth accumulation. Employment will continue to be closely watched and steps on the road to recovery will likely continue to come one-by-one. Although concerns remain, many experts are hopeful of a brighter year in 2010. KW Research 2
  • 3. Home Sales 4 The Numbers That Home Price 5 Inventory 6 Drive Real Estate Mortgage Rates 7 Affordability 8 Brought to you by: KW Research
  • 4. Home Sales In Millions Existing home sales surged a record-breaking 44 percent from a year ago, the highest annual gain since NAR started tracking the data in 1999. The strong gain can be attributed to first-time buyers who accounted for 51 percent of all home sales, the highest on record dating back to 1981, as they rushed to beat the deadline for the first- time buyer tax credit that was due to expire November 30. The previous high was 44 percent in 1991. Sales activity is at the highest level since February 2007 when it reached 6.55 million. Seasonally Adjusted Home Sales Latest data release: December 22, 2009 Source: National Association of Realtors KW Research 4
  • 5. Median Home Price In Thousands Low home prices continue to add the extra boost to home sales. Existing-home price was $172,600 in November, 5 percent higher from its low in January. While still 4.3 percent down from a year ago, it is the smallest decline in two years. Distressed properties, which accounted for 33 percent of all transactions in November, continue to hold down the median home price, as they typically sell for 15 to 20 percent less than traditional homes. Latest data release: December 22, 2009 Source: National Association of Realtors KW Research 5
  • 6. Inventory - Number of homes available for sale In Millions The supply of homes is now at the lowest level in almost three years. The supply of existing homes for sale at the end of November declined 1.3 percent to 3.52 million, representing a 6.5-month supply at the current sales pace, down from a seven-month supply in October. Generally, a six-month supply is considered balanced. Compared to a year ago, there are now 15 percent fewer homes on the market. 15% Number of Homes Available for Sale decline from last year Latest data release: December 22, 2009 Source: National Association of Realtors KW Research 6
  • 7. Mortgage Rates 30-Year Fixed Mortgage rates have begun to inch back up as government support runs its course and interest rates rise. On December 24, the average 30-year fixed-rate mortgage was 5.05 percent, the first time it has gone above 5 percent since the end of October. According to Amy Crews Cutts, deputy chief economist at Freddie Mac, “Extraordinary resources have been put into keeping the rates down and supporting the mortgage market, and it’s hard to imagine that the rates can go much lower than they are.” 2009 Average Weekly Mortgage Rates Source: Freddie Mac KW Research 7
  • 8. The percentage of a median family’s income Affordability - required to make mortgage payments on a Percentage of Income median-priced home Affordability continues to be at a record level thanks to unprecedented interest rates, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent. Well below the historical standard of 25% Affordability as of November every year. Calculations assume a 20% down payment. Source: National Association of Realtors KW Research 8
  • 9. Residential Retrofit 10 Program Cash for Recent Clunky Appliances 11 Call to Increase Government Action Lending Fannie and 12 Freddie 13 Support Brought to you by: KW Research
  • 10. Residential Retrofit Program December 2009 Vice President Biden recently announced a program called “Recovery Through Retrofit.” In addition to creating energy performance labels, it will create national energy performance measures for existing homes. It will provide the following: 1. Access to home energy retrofit information 2. Access to financing for retrofits 3. Access to trained professionals to perform the retrofit The goal of the imitative is to create more energy efficiency in homes to benefit the country’s energy consumption. Retrofits include but are not limited to energy efficient heating, cooling, and water systems, insulation, roofing, flooring, windows, and solar panels. Source: National Association of Realtors KW Research 10
  • 11. Cash for Clunky Appliances December 2009 In efforts to vamp up energy efficiency, the federal government is implementing a rebate program for appliances. People can swap in their old “clunky” appliances for new energy-efficient ones, saving electricity and saving on monthly bills. A 20-year-old fridge can use three times as much energy as a new Energy Star-approved fridge. The age of your appliances impact your actual savings, so check into it before purchasing. Important things to know: 1. Plans vary by state. Check out energysavers.gov for details. 2. Buy before it ends. Like the car rebate program Cash for Clunkers, this program has a set amount of federal money allocated to it. Once the $300 million is gone, the program will likely end. It is expected to run out quickly. Source: The Associated Press KW Research 11
  • 12. Government Calls for Increased Lending by Banks December 15, 2009 According to the FDIC, lending has fallen for five consecutive quarters – even though banks have become profitable again and have started to repay government loans. Banks lent $600 billion less from September 2008 to September 2009, representing a 7 percent decline. Banks site a lack of qualified borrowers as the primary reason and point to the trend of decreased borrowing during recessions. The goals of banks and the government appear to be in line now with each bank representative talking about getting aggressive with small business lending over the next year. Goals for 2010 small business lending include $5 billion for Bank of America and $4 billion for Chase. As banks continue to be profitable, they can be expected to use the proceeds to repay the government as well as increase their efforts to make good loans. Small business owners should expect an increase in the amount of loans available during 2010 compared to 2009. Holding true to the trend in 2009, a good credit score and steady employment will likely continue to be important conditions of obtaining a mortgage. Sources: The Washington Post, FDIC KW Research 12
  • 13. Fannie & Freddie Get Unconditional Federal Support December 24, 2009 On December 24, the government announced it will provide unconditional financial support to Fannie Mae and Freddie Mac. This will expire in 2012, after which the firms will have approximately $290 billion allocated to them. • September 2008: Bush administration took over Fannie Mae and Freddie Mac at the height of the financial crisis and promised $200 billion to keep them afloat. • Earlier in 2009: Obama doubled the $200 billion to $400 billion. • December 24, 2009: The president announces the government will provide unconditional financial support to Fannie Mae and Freddie Mac for 2010-2012. • December 29, 2009: Analysts predict that Fannie and Freddie will begin purchasing delinquent loans. These two institutions play an integral role in both the housing and lending industries. • When a bank makes a conventional mortgage loan, it will then sell that loan to Fannie Mae or Freddie Mac. • This frees up the bank to then make more loans and repeat the process. When Fannie and Freddie stop buying mortgages from the banks, mortgage credit freezes, banks stop lending, and houses can’t sell. Such was the case last year at the height of the credit crisis. Confidence in these firms is a key component to the flow of credit and this unconditional financial support intends to bolster that confidence. Despite the short-term unconditional federal support, experts say it is critical for the real estate industry, the lending industry, and the economy that these companies keep their long-term vitality in mind over the next three years. Source: The Washington Post KW Research 13
  • 14. Tips to Save Topics for Home Buyers, Energy and Add 15 Value Making Sellers, and Owners Maintenance Routine 16 Brought to you by: KW Research
  • 15. Tips to Save Energy and Add Value When it comes to energy efficiency, look for smart features and expertise to help you save energy and money and add value to your home. 1.Begin with a right-sized home. If the home you buy is simply too large for you or your family’s needs or plans, you stand a good chance of wasting energy through excessive heating and cooling costs. If it’s too small, you’ll feel cramped and uncomfortable. It’s a big investment, so seek balance and buy it “right” from the outset. 2.Purchase ENERGY STAR appliances such as your TV, dishwasher, washer and dyer, and microwave. And especially the refrigerator, as it alone contributes about 10 percent of the energy use in a home. Also, unplug electronics not in use or turn off power strips to avoid phantom charges. 3.Install efficient lighting such as compact fluorescent (CLF) or LED bulbs in every fixture. Lighting accounts for about 6 percent of an energy bill each year. 4.Get an energy audit and have tests performed to identify ways of improving your efficiency. You can always upgrade your heating, ventilation, and air conditioning (HVAC) system as well as your thermal envelope, which includes insulation, windows, and doors and the seals or weather-stripping around them. Visit energy.gov/energytips for more tips. KW Research 15
  • 16. Making Home Maintenance Routine Home ownership has its wonderful benefits, and as one of the single biggest financial assets many people own, preparing, planning, and making home maintenance a routine are important. Personal finance experts recommend setting aside at least 1 percent of your home price each year in a separate account for maintenance and repair costs. Automatically deducting the funds from your paycheck or automatically transferring it between accounts each month can make this easy. Some years homeowners will have less than 1 percent in maintenance costs or repairs and some years they will have more. When something big and unexpected happens; for example it’s finally time to replace the roof; this will provide the financial cushion to take care of it and the peace of mind knowing one of their biggest assets is well taken care of. Source: MSN Money KW Research 16
  • 17. Your Local Market 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 area. Talk to your Keller Williams agent for assistance interpreting the conditions in your local market. Keller Williams associates are equipped with all the knowledge and information to help you navigate through the process of buying or selling a home in this challenging market. KW Research 17
  • 18. About Keller Williams Realty Founded in 1983, Keller Williams Realty, Inc., is an international real estate company with more than 74,175 associates and 693 offices located across the United States and Canada. The company began franchising in 1991, and following 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 shares its knowledge, policy control, and company profits on a system-wide basis. Focusing on helping associates realize their fullest potential, Keller Williams Realty is known as an industry leader in its family culture, unmatched education, profit sharing business model, phenomenal coaching program, and technology offerings. The company provides associates with all the tools needed to grow and thrive in today’s market. www.kw.com KW Research 18
  • 19. About Paul W. Drury • Originally licensed as an agent in Ohio in 1986, Paul began with Lehman 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 KW Research 19
  • 20. 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 the third largest company in the US; local MLS; NEOHREX (Northern Ohio Real Estate Exchange); and on national sites such as Trulia, Zillow, CyberHomes, and others. KW Research 20
  • 21. 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. Examples of properties sold recently using this method include: – 947 Gulf Road in Elyria (sold in 28 days) http://947gulfroad.com/ – 359 Gayle Drive in Sheffield Lake (sold in 57 days) http://359gayledrive.com/ – 327 Gayle Drive in Sheffield Lake (sold in 18 days) http://327gayledr.com/ – 810 Sandalwood Drive in Elyria (Sold in 19 days) http://810sandalwooddr.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. No obligation. KW Research 21
  • 22. Properties currently for sale • Properties currently for sale: – 37101 Hunters Trail in Avon - http://37101hunterstrail.com/ – 4435 Porter Road in North Olmsted - http://4435porterroad.com/ – 19593 Whitehead Road in Wellington - http://19593whiteheadrd.com/ • Would you like to see one of these homes? Click on the link for a tour. • Would you like your home or property promoted like these? – Contact Paul for a free, no obligation, consultation today at 440-385-5650. KW Research 22
  • 23. 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. • Paul is available most hours of the day directly without having to speak with assistants and he monitors his email regularly. KW Research 23
  • 24. What we have to offer buyers (Cont’d) • Buyers can access Paul’s website at www.druryrealty.com and 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. While we may not be the biggest firm in Northern Ohio yet, we are in many areas of the national already. • 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 up on national websites such as Trulia providing for greater access to search tools. KW Research 24
  • 25. Investors & Shoppers – Foreclosure Watch • 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? • Want to know what is happening in your marketplace? • Send Paul an email today and request free market updates at paul@druryrealty.com • No cost. No commitments. No obligations. No fuss. No kidding. KW Research 25
  • 26. Follow Paul on line… Home Web Page On Twitter • - www.twitter.com/PaulWDrury • www.druryrealty.com On Zillow On FaceBook • www.zillow.com/profile/PaulWDrury • - www.facebook.com/paul.w.drury On Trulia On LinkedIn • www.trulia.com/profile/paulwdrury • www.linkedin.com/in/paulwdrury KW Research 26

×