This Month in Real Estate August 2011

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Commentary 2

The Numbers That Drive Real Estate 3

Recent Government Action 8

Topics for Home Buyers, Sellers, and Owners 10

Released:August 2011

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The U.S. housing market has shown increased stability in home sales during 2011 compared to the previous year. Home prices are up 18% since their low in February. Signs of recovery remain mixed in the economy—employment and GDP came in less than expected while the strong points were in consumer confidence and new home starts.

The debt ceiling has been raised without any drastic changes to occur immediately. Although this prevents a sudden shock to a weakening recovery, over the next year and a half, experts anticipate considerable changes in how the government spends and collects money. The uncertainty of what is to come and how it will impact various industries will likely cause some to play on the safe side. The good news is that the government remains solvent and will be able to pay its bills without major disruptions.

Economic improvement typically spurs rising interest rates in order to rein in inflation. Although inflation has been a 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.

Commentary

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Home Sales 4

Home Price 5

Supply of Inventory 6

Mortgage Rates 7

The Numbers That Drive Real Estate

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Tax Credit

Expired

Latest Data Release: July 20, 2011Source: National Association of Realtors

Home SalesIn Millions

Home sales in June were down 8.8% compared to the same month last year when the impact of the tax credit was at its peak. Compared to the previous month, however, sales held relatively steady at 0.8% below May’s numbers. NAR Chief Economist Lawrence Yun cites an unusually high number of contract cancellations the month before as an explanation for the slight easing of sales in June. The inability to meet the new bank financing requirements will remain a constant barrier for a long time to come due to all of the new banking regulations and the tightening of credit.

Gradual Recovery Without Tax Credit

June ’10-’11

June ’09-’10

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Home PriceIn Thousands

For the first time in a year, home prices are up year-over-year and month-over-month. This marks only the fourth time that prices have increased since June 2006. Home prices rebounded 8.9% in June with median home prices rising to $184,300. This is 0.8% above the year-ago level. Median home prices remain close to 2003–2004 levels. The combination of low prices and historically low interest rates means that home affordability is extremely favorable.

June ’10-’11June ’09-’10


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Tax Credit

Expired

Supply of InventoryIn Months

The supply of homes measured in months on the market at their current pace was up during June compared to May. This is keeping with inventory levels typically rise during the summer months. Month’s supply remained 24% below the peak of 12.5 months in July 2010 and 14% above April of 2010 when the home buyer tax credit was in full swing.

June ’09-’10June

’10-

’11


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Mortgage rates remain at record lows after steadily declining in 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 to enable more buyers to 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.

Mortgage Rates30-Year Fixed

Source: Freddie Mac; June 23, 2011

Type Rate30-Year Fixed 4.39%15-Year Fixed 3.54%5/1 ARM 3.18%Historical Average 8.90%

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Recent Government Action

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Debt-Ceiling DealAfter a drawn-out debate between the House and the Senate, Democrats and Republicans; Congress and the President reached a deal on August 2, 2011, to raise the debt ceiling. Because of the decision and the additional borrowed funds, the United States is safe from defaulting on its debt and will be able to pay its bills. The deal includes the following:

– Immediately cuts spending by $917 billion and raises the debt ceiling by $400 billion. It will raise the ceiling by another $500 billion in February, providing funds through early 2013.

– Creates a joint committee of twelve members from the House and Senate that will make recommendations for $1.5 trillion in deficit reduction measures, and if the plan is rejected by Congress, several automatic spending cuts will take effect.

– Requires Congress to vote on adding a balanced budget amendment to the constitution, which would mandate that future spending cannot exceed revenues. If it passes, the debt ceiling can be raised by $1.5 trillion. If not, then it can only be raised by $1.2 trillion.

Sources: The Associated Press, WSJ.com, The Economist, Politico

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Debt-Ceiling Deal (Cont’d)

Lack of concrete details about how the deficit will be reduced sets the stage for continued political debate in the coming months and years. And with the U.S. securities AAA rating being downgraded, the credit agencies will watch carefully to ensure Congress takes action to steer the country in a financially solvent direction. Downgrades would result in higher interest rates, making it more expensive for consumers and the government to borrow money.

Bottom line: Crisis averted—it’s business as usual for now, but this is not the last to be heard regarding U.S. deficit and debt levels. Some reports indicate that this may change the game in Congress from “spend, spend, spend” to “cut, cut, cut.”

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National Stats – Economic Forecast

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National Stats – Mortgage Loan Applcations

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National Stats – 10 Year Treasury Notes

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National Stats – Unemployment Insurance

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National Stats – Retail Sales & Food Service

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National Stats – Real Employment Output

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Topics for Home Buyers, Sellers, and Owners

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Energy Saving TipsSummertime is fun time! It’s also the peak season for

electricity use, particularly with this exceptionally steamy summer. To avoid energy bill shock and enjoy an energy-efficient summer, follow these tips:

1. Have your central air conditioning checked annually by a professional HVAC technician to ensure it is functioning at its best capacity.

2. Replace the air filters every three months to keep dust out of the ducts, especially if you’ve had renovations done in your home.

3. Keep the vents clear of carpets, drapery, and furniture, and close the vents in rooms that you don’t use often.

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Energy Saving Tips (Cont’d)

4. Install a programmable thermostat. This will allow you to turn the temperature up during the day when nobody is home and at night when the temperature goes down. Each degree saves 3-4% in energy costs.

5. Use ceiling or room fans as they can do a good job of cooling your house while using a lot less energy than central air units.

6. Top up the insulation in the attic and seal air leaks around windows and doors. This will help save energy in both summer and winter.

7. Get rid of old inefficient appliances. Consider Energy Star ratings when looking for new appliances.

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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.

Your Local Market

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Your Local Real Estate 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 Sold

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Investors & Shoppers – Foreclosure WatchNORTH 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/o21fum)• 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

[email protected]• Call Paul directly at 440‐385‐5650.

• No cost. No commitments. No obligations. No fuss. No drama. No kidding.

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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

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About Paul W. Drury

• Originally licensed as an agent in Ohio in 1986, Paul began withLehman 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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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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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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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.

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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.

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What we have to offer buyers (Cont’d)

• Buyers can access Paul’s website www.drury.kwrealty.comand 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

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Follow Paul’s Real Estate updates online…

Home Web Page• www.druryrealty.com

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

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

On the Real Estate Global Network

• www.realestateglobalnetwork.com/profile/PaulWDrury

On YouTube• www.youtube.com/user/MrPDrury

On Twitter• ‐ www.twitter.com/PaulWDrury

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

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

Free Real Estate Webinars• http://budurl.com/druryvideos

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

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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

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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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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• GoDaddy Domain Sale• ESET Internet Security Software

• NewEgg Electronics Superstore

• E‐fax Electronic Fax Service

• TomTom GPS Poducts• DocuSign Electronic Document Service

• Franklin Covey Supplies• Intuit Quickbooks• Executive Book Summaries

• RubberMaid Products• Build my Move Moving Services

• eBatts discount battery services

• Bulb America Light Bulb Supplier

• Magazine Mall

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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.

Business

This Month in Real Estate August 2011