Detailed National and Regional (North central Ohio) analysis of Real estate Conditions and Trends affecting residential real estate.

1. Commentary 2
Released:
The Numbers That Drive Real Estate 3
April 8, 2011
Recent Government Action 9
Topics for Home Buyers, Sellers, and Owners 11
Brought to you by:
KW Research

2. Commentary
Gradual and uneven progress in the housing market continues without government support. The
market has shown remarkable improvement from the initial drop after the expiration of the home
buyer tax credit this past July. Although higher‐than‐normal distressed sales skew the overall picture
of home prices downward, inventory remains at pretax credit expiration levels. The rock‐bottom
interest rates of 2010 are likely to trend upward. As economists anticipate rates at or above 6% by the
end of 2012, buyers are moving off the sidelines and into the market.
Recent reports suggest the economy is picking up steam even though it is not yet fully reflected in the
job market. In terms of economic growth, America outpaces all the other G7 nations except Canada.
However, when it comes to adding back jobs, America is the weakest. During the recession,
businesses looked for ways to increase efficiency and productivity. U.S. productivity, or output per
worker, doubled in both of the past two years. A full housing recovery depends on growing
employment. Without jobs, most Americans cannot buy new homes or afford their current ones. As
the economy continues to pick up steam, employment will likely follow suit as there is a limited
amount of productivity workers can provide.
While the economy improves, stimulus efforts by the government and the Federal Reserve Board will
gradually wind down, which typically spurs rising interest rates. 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
Drive Real Estate
Inventory 6
Mortgage Rates 8
Affordability 9
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4. Home Sales
In Millions
Although home sales have fallen 9.6% compared to the previous month, they remain close to last
year’s levels, showing only a 2.8% decline. The unseasonably cold weather across much of the
country during late January and February could have kept buyers indoors more so than normal.
Gradual improvement with bumps along the way has long been the anticipated road to full recovery.
In fact, home sales remain 26.4% above the low last July. As Lawrence Yun, chief economist of the
National Association of Realtors, explains “month‐to‐month movements can be instructive, but in
this uneven recovery, it’s important to look at the long‐term performance.”
Extended and Expanded Home Buyer Tax Credit Tax
Credit Gradual Recovery Without Tax Credit
Must have closed by June 30, 2010
Expired
’1 1
’1 0 ‐
ary
Fe bru
February ’09‐’10
Latest Data Release: March 21, 2011
Source: National Association of Realtors
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5. Home Price
In Thousands
Home prices continued to soften in January with median home prices decreasing to $156,100.
This is 5.2% below the year‐ago level and brings the median price close to February 2002 levels.
Two out of every five homes sold during February, or 40% of sales, were distressed properties.
Distressed sales often sell for 10% 20% less than traditional home sales. The decline in home
prices is less reflective of the value of individual homes and more reflective of the bargains that a
record level of all cash buyers and investors are snapping up. Prices and mortgage rates remain
favorable for buyers as the spring selling season starts.
February ’09‐’10
February ’10‐’11
Latest Data Release: March 21, 2011
Source: National Association of Realtors
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6. Supply of Inventory
In Months
The slowing of home sales and an increase in listings pushed the months’ supply up to 8.6
months, an increase of 15% from the previous month and 2% year over year. This is the third‐
lowest level since June. Months of inventory remains 31% below its peak of 12.5 months in July
and is now back to pretax credit expiration levels. With the summer selling season approaching
quickly, experts anticipate more homes to go on the market in the coming months.
February ’09‐’10
February ’10‐’11
Latest Data Release: March 21, 2011
Source: National Association of Realtors
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7. Mortgage Rates
30­Year Fixed
Throughout the month, rates hovered in the 4.8% 4.9% range. After rising above 5% for the first
time in about ten months in early February, rates have come back below but are expected to follow
an upward trend throughout the year. As overall economic recovery remains on track, rates will
likely rise to keep inflation in check. Buyers wanting to capture the savings in monthly payments that
a historically low interest rate affords are expected to take advantage of excellent buying conditions.
Type Rate
30‐Year Fixed 4.86%
15‐Year Fixed 4.09%
5/1 ARM 3.70%
Historical Average 8.90%
Source: Freddie Mac 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 February. 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.
Affordability as of February every year. Calculations assume a 20% down payment.
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Source: National Association of Realtors

9. Recent
Government Action
Brought to you by:
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10. Summit‐Level Solutions to Foreclosure Uncertainties
Five of the nation’s largest banks met in late March along with state and federal officials to discuss a
settlement that aims to correct questionable practices in the mortgage industry. Reaching an
agreement could resolve foreclosure procedure problems sparked during the robo‐signing scandal.
While most of the meeting focused on servicing standards, the hot topics of debate included reducing
loan balances, broad‐based write‐downs, and the extent to which legal claims will be dispelled.
The Obama administration is encouraging a quick settlement in order to prevent additional delays to
the housing market recovery. Their concern, according to RealtyTrac, Inc., is that “foreclosure filings
have decreased immensely in the past six months to the lowest level in three years in February.”
James Dimon, chief executive of JPMorgan Chase & Co, concurred, stating that, “Any settlement
should produce rational policies that work for the American public. That’s what we need.”
While tangible results have yet to be seen, the good news for homeowners, buyers, and sellers is that
all parties involved are taking steps in the right direction. Their focus is on a solid resolution to the
technical issues that are creating a bottleneck in the disposition of foreclosures — a prerequisite to
the recovery of the housing market.
Source: The Wall Street Journal KW Research 10

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

12. Deciding to Buy
When first‐time home buyers decide they are ready to buy, it is essential for them to
begin the process by carefully assessing their values, wants, and needs—both for the
short and for the long term. This is a critical step since consultation sessions normally
start with the buyers’ values. Afterward, buyers can explore their wants and needs, and
once defined, determine actual criteria.
A recent study shows how important the following home‐buying factors were to buyers:
1. List Price: 72%
2. Location: 69%
3. Neighborhood: 55%
4. Floor Plan: 37%
5. Square Footage: 28%
6. Schools: 22%
By having the home‐buying criteria in mind before walking into a consultation, buyers
are off to a better start when meeting with their real estate agent. The consultation
allows buyers to fill in any missing gaps within their values, wants, and needs.
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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 real estate
market in your own area.
Talk to Paul W. Drury for assistance interpreting the conditions 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, 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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14. Your Local Market
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15. Local Market Absorption Rate
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16. Number of Homes “in play”
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17. Avg Price per sq ft
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18. Sold to List Price Comparison
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19. Avg Price For Sale VS Sold
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20. 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 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 2009.
The company has succeeded by treating its associates as partners and sharing
its knowledge, policy control, and company profits on a system wide 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
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21. 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
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22. 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
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23. 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.
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24. Properties currently for sale
• 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.com
– 230 Ohio Street in Elyria – http://230OhioSt.com
• Would you like to see one of these homes? Click on the link
for a visual tour.
• 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.
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25. 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/aDE5XP
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26. 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.
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 post on www.communityohio.com
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27. Investors & Shoppers – Foreclosure Watch
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 free updated foreclosed homes list
provided to you freely ‐ http://www.communityohio.com/realestate.php
Shoppers
• Want to know what is happening in your marketplace?
• Looking to watch a particular city or neighorhood?
• Send Paul an email today and request free market and locatin updates at
paul@druryrealty.com
• Call Paul directly at 440‐385‐5650.
• No cost. No commitments. No obligations. No fuss. No drama. No kidding.
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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/PaulWDr
ury
Special Discounts Links
On YouTube • http://bit.ly/ffvZOr
• www.youtube.com/user/MrPDrury
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29. 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
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30. 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.
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