The document provides commentary and data on the US housing market in mid-2011. It summarizes key metrics driving the real estate market including home sales, prices, inventory, mortgage rates, and affordability. It also outlines recent government actions and provides tips for home buyers, sellers, and owners. Finally, it provides information about Keller Williams Realty and local real estate agent Paul Drury.

1. Commentary 2
Released: The Numbers That Drive Real Estate 3
July 2011 Recent Government Action 9
Topics for Home Buyers, Sellers, and Owners 11
Brought to you by:
KW Research

2. Commentary
The U.S. housing market has shown increased stability in home sales during 2011 compared to the
previous year. The trend has been an upward one since the expiration of the tax credit last summer.
Home prices have softened, particularly earlier this year, due to a higher-than-normal number of
distressed sales. However, both the percentage of distressed sales and the amount of time they
spend on the market has decreased in recent months, a positive sign for the market moving forward.
In fact, prices have steadily followed a positive monthly trend since February. Mortgage defaults have
also declined lately.
While interest rates continue to break new record lows, the number of buyers who are able take
advantage of these savings is restricted by tougher underwriting standards for mortgages. 40% of the
banks surveyed by the Office of the Comptroller of the Currency tightened lending standards for
mortgages within the past year. In his second press conference, Federal Reserve Chairman Ben
Bernanke stated that a quicker foreclosure process and additional home price stabilization are key to
boosting confidence in the market and bolstering a more robust recovery in the housing sector.
As the economy improves, stimulus efforts by the government and the Fed will most likely continue to
wind down, which typically spurs rising interest rates to keep inflation in check. Although inflation has
been the source of recent concern, the Fed appears confident it will remain in check for the near
term. Meanwhile, buyers continue to benefit from historically favorable buying conditions, and sellers
are encouraged by increased market stability.
KW Research 2

3. Home Sales 4
The Numbers That Home Price 5
Supply of Inventory 6
Drive Real Estate Mortgage Rates 7
Affordability 8
Brought to you by:
KW Research

4. Home Sales
In Millions
Home sales in May were down 15.3% compared to the same time last year when the impact of
the tax credit was at its peak. Compared to the previous month, sales were down 3.8%. NAR
Chief Economist Lawrence Yun states that the slower pace of sales is consistent with the
slower pace of overall economic activity and that falling gas prices will help to moderate the
impact of a sluggish economy. Although he continues to cite unnecessarily tight credit for
limiting buying activity, the pace of sales in the second part of the year is expected to be
stronger.
Extended and Tax Gradual Recovery Without Tax Credit
Expanded Credit
Home Buyer Expired
Tax Credit
Ma y
’10-
’11
May ’09-’10
Latest Data Release: June 21, 2011
Source: National Association of Realtors
KW Research 4

5. Home Price
In Thousands
Home prices rebounded 3.4% in May with median home prices rising to $166,500. This is
4.6% below the year-ago level and continues to keep the median price close to 2002–
2003 levels. Just under 1 in 3 homes sold during May were distressed properties, which
typically sell at a 10%–20% discount. This is down 6 percentage points from April and is
exactly the same as a year ago. Investors represented 19% of sales, and first-time buyers
accounted for 35% of May sales compared to 14% and 46% respectively a year ago at the
peak of the tax credit. Home prices and mortgage rates remain favorable for buyers heading
into the summer selling season.
1
’1
0-
’1
ay
M May ’09-’10
Latest Data Release: June 21, 2011
Source: National Association of Realtors
KW Research 5

6. Supply of Inventory
In Months
The supply of homes measured in months on the market at their current pace was up
during May compared to April. Inventory levels remained 26% below the peak of 12.5
months in July 2010 and 12% above April of 2010 when the tax credit was in full swing.
May ’09-’10
May ’10-’11
Latest Data Release: June 21, 2011
Source: National Association of Realtors
KW Research 6

7. Mortgage Rates
30-Year Fixed
Rates are at a record low after steadily declining throughout May, primarily due to
uncertainty in the global and domestic economies. While these incredible rates represent a
significant savings for home buyers, experts note that for the benefits to fully be realized,
lending conditions must loosen so more buyers can take advantage of them. As overall
economic activity gets back on track, rates will likely rise to keep inflation in check. In other
words, the window of opportunity for buyers to lock in these historically low interest rates
may not remain open much longer.
Type Rate
30-Year Fixed 4.50%
15-Year Fixed 3.69%
5/1 ARM 3.25%
Historical Average 8.90%
Source: Freddie Mac; June 23, 2011 KW Research 7

8. Affordability - The percentage of a median family’s income required
to make mortgage payments on a median‐priced
Percentage of Income home
Housing affordability continued at record levels in May. 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 reverse the recent
affordability trend. *However with high unemployment continuing, and food, energy, and
healthcare costs all taking up significantly higher portions of household incomes, the
affordability index may be altered for a many years to come.*
Affordability as of May every year. Calculations assume a 20% down payment.
KW Research 8
Source: National Association of Realtors

9. Recent
Government Action
Brought to you by:
KW Research

10. Fed Discontinues Bond Purchase Program
The Federal Reserve Board has announced the end of its $600 billion bond-buying
program. Also known as quantitative easing, the goal of this program was to bolster
economic activity and lending.
When banks are concerned about the ability of businesses and consumers to repay loans,
they tend to buy treasury securities, which are guaranteed by the federal government. The
Fed’s bond-buying program decreased the yield on treasuries, making them less appealing
for banks and making lending to consumers and businesses more appealing. On the other
hand, the program created more money and lowered the value of the U.S. dollar. In
moderation this can be a good thing for incentivizing exports and boosting economic
activities even though the impact tends to increase inflation. In November 2010, when the
program was announced, there was concern about deflationary pressures. Since then,
inflation has returned but remains within acceptable levels.
The Fed is expected to keep interest rates at the current historical lows and economic
activity is expected to pick up steam in the second half of the year.
Sources: LATimes.com, WSJ.com KW Research 10

11. Topics for Home Buyers, Sellers,
and Owners
Brought to you by:
KW Research

12. Tips for Selling Your House
1. Price it right. Studies show that when homes are priced to sell, they
not only sell faster, they ultimately command a higher price than homes that
sit on the market and get perceived as “stale.”
2. Consider a presale inspection. This will help you to know what
items need to be fixed before your home goes on the market. Repairs and
concessions made during the negotiation process can end up costing
sellers more. KW Research reveals that in 2010, 89% of move-up and 82%
of first-time buyers purchased a home in good to excellent condition. 75%
of sellers started making repairs 1–8 weeks before listing.
3. Higher may not always be better. While a higher offer can be
tempting, be sure to consider the whole offer. An offer without
contingencies, conditions, and with a higher down payment may be a more
solid deal.
KW Research 12

13. 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
your real estate market.
Talk to Paul W. Drury for assistance interpreting the conditions in the North
Central Ohio Regional market. The following graphs are general and cover
some of the broader market area he serves. For 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.
KW Research 13

14. Your Local Market
KW Research 14

15. Local Market Absorption Rate
KW Research 15

16. Number of Homes “in play”
KW Research 16

17. Avg Price per sq ft
KW Research 17

18. Sold to List Price Comparison
KW Research 18

19. Avg Price For Sale VS Sold
KW Research 19

20. Investors & Shoppers – Foreclosure Watch
NORTH CENTRAL OHIO REAL ESTATE OPPORTUNITIES!
Investors
• 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?
• Find your next opportunity in our updated foreclosed homes list
(http://bit.ly/mTNKVv)
• The link is also available on http://www.communityohio.com/realestate.php
Shoppers
• Want to know what is happening in your marketplace?
• Looking to watch a particular city or neighborhood? Check out our Foreclosure
Map (http://bit.ly/mhQW9x).
• Send Paul an email today and request free market and location updates at
paul@druryrealty.com
• Call Paul directly at 440‐385‐5650.
• No cost. No commitments. No obligations. No fuss. No drama. No kidding.
KW Research 20

21. About Keller Williams Realty
Founded in 1983, Keller Williams Realty is an international real estate company
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 second-largest U.S. residential real estate firm
in 2010.
Keller Williams Realty 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 programs, and technology
offerings.
www.kw.com
KW Research 21

22. 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 ‐ http://www.druryrealty.com
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23. 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, 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
logging onto this link… http://budurl.com/druryvideos
KW Research 23

24. 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.
– http://www.listingpromoterohio.com/MyListings.aspx?pid=23771
– http://www.communityohio.com/realestate.php
• 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 24

25. Properties currently for sale
• Premium residential properties currently for sale:
– 13951 Diagonal Road in Lagrange – http://13951DiagonalRd.com
– 230 Ohio Street in Elyria – http://230OhioSt.com
– 19593 Whitehead Road in Wellington ‐ http://19593whiteheadrd.com/
– See http://www.communityohio.com/realestate.php for a complete
• Would you like to see one of these homes? Click on the link for a
visual tour.
http://www.listingpromoterohio.com/MyListings.aspx?pid=23771
• Check out our YouTube Channel at http://www.youtube.com/user/Mrpdrury
• 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 25

26. 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.
• 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/eWXimO.
KW Research 26

27. What we have to offer buyers (Cont’d)
• Buyers can access Paul’s website www.drury.kwrealty.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.
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
profiles for you so you get notified at about 8:30 am of any
new properties that come available. You can also see
profiles set up on national websites such as Trulia
providing for greater access to search tools.
• Everything we have we also post with scores of discounts
and product and service links on
www.communityohio.com
KW Research 27

28. Follow Paul’s Real Estate updates online…
Home Web Page On Twitter
• www.druryrealty.com • ‐ www.twitter.com/PaulWDrury
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
On the Real Estate Global Free Real Estate Webinars
Network • http://budurl.com/druryvideos
• www.realestateglobalnetwork.com/profile/PaulW
Drury
Special Discounts Links
On YouTube • http://bit.ly/ffvZOr
• www.youtube.com/user/MrPDrury
KW Research 28

29. Social Networking on Facebook
• Facebook – “North Central Ohio Real Estate
Consulting, News, and Stats”
• https://www.facebook.com/pages/North-Central-Ohio-Real-Estate-
Consulting-News-and-Stats/164210080283714
• Facebook – “North Central Ohio Real Estate
Investments”
• https://www.facebook.com/pages/North-Central-Ohio-Real-Estate-
Investments/145904528811383
• Facebook – “Community Information, News, and
Savings for Ohio”
• https://www.facebook.com/pages/Community-Information-News-
and-Savings-for-Ohio/100692843343793
KW Research 29

30. Social Networking on Twitter
• @PaulWDrury “North Central Ohio Real
Estate Consulting”
• “http://www.twitter.com/PaulWDrury”
• @CommunityOhio
• “http://twitter.com/CommunityOhio ”
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31. Paul’s special vendor deals of the month…
Now advertising properties, features, and discounts on
• http://www.communityohio.com
• Featuring outstanding deals from the following vendors
• Amazon.com • Franklin Covey Supplies
• GoDaddy Domain Sale • Intuit Quickbooks
• ESET Internet Security • Executive Book
Software Summaries
• NewEgg Electronics • RubberMaid Products
Superstore • Build my Move Moving
• E‐fax Electronic Fax Services
Service • eBatts discount battery
• TomTom GPS Poducts services
• DocuSign Electronic • Bulb America Light Bulb
Document Service Supplier
• Magazine Mall
KW Research 31

32. 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 in 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 for educational 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 some degree 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.
KW Research 32