Current Real Estate News from Paul W. Drury

1. Commentary 2
Released:
The Numbers That Drive Real Estate 3
June 7, 2010
Recent Government Action 9
Topics for Home Buyers, Sellers, and Owners 11
Brought to you by:
KW Research

2. Commentary
The housing sector continues to show signs
of recovery. Together the tax credit
(which expired at the end of April), the
more upbeat consumer confidence, and
favorable market conditions all
contributed to bolstering April’s sales
activity ‐ with existing home sales
increasing for the second straight
month.
The return of buyer confidence with much of the home price correction believed to be
over, encouraging economic developments and historically low mortgage rates, will
provide the stepping stone for further market stabilization.
Meanwhile, stagnant job growth and elevated levels of foreclosure continue to be cause
for concern. The government is now taking proactive steps to restructure the
mortgage industry with risk‐management measures seen by experts as a “huge cut
in red tape” that would ultimately benefit consumers.
KW Research 2

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

4. Home Sales
In Millions
Existing home sales strengthened in April to 5.77 million, up 8.7% from March and
22.8%from last April. This is the tenth consecutive month of year‐over‐year increases.
According to Lawrence Yun, NAR chief economist, although part of the uptick was
expected from the tax credit, there’s also been a return of buyer confidence, for those
who remained on the sideline last year. The return of confidence is a result of
stabilized prices, an improved economy, and continued advantageous interest rates.
In March, 49% of sales were from first‐time buyers.
Impact of Tax
Seasonally Adjusted Home Sales ‐ In Millions Credit Deadline
09
April 08‐
April 09‐10
Latest Data Release: May 24, 2010
Source: National Association of Realtors
KW Research 4

5. Home Price
In Thousands
The median price for an existing home was $173,100 in April, up 2.1% from a year ago and
4% from March. Distressed homes, accounting for a third of last month’s sales, continued
skewing prices downward slightly as they typically are discounted 15% compared to typical
home sales. Overall, prices this past year showed increased stability over the previous year.
Home Price ‐ In Thousands
8‐09 Increased
April 0
Stability
‐10
il 09
Apr
Latest Data Release: May 24, 2010
Source: National Association of Realtors
KW Research 5

6. Inventory ‐ Number of homes available for sale
In Millions
Total housing inventory rose slightly to 4.04 million in March, representing slightly less
than an eight‐and‐a‐half month supply of sales (if homes continue to sell at the
current pace consistently and no new homes come on the market). Compared to the
previous year, there are now 3% more homes on the market. Although this is the first
rise in twenty consecutive months of decline when compared to the previous year,
NAR’s chief economist believes this increase can be attributed to the summer selling
season and that home prices are back on track.
3% more
homes on
April 08‐09 market
April 09‐1
0
Number of Homes Available for Sale ‐ In Millions
Latest Data Release: May 24, 2010
Source: National Association of Realtors
KW Research 6

7. Mortgage Rates
30­Year Fixed
Mortgage rates dipped back below 5% this month due largely in part to the European
debt crisis. As confidence in the value of the Euro eroded, more investors chose the U.S.
dollar instead. With more demand for dollars, the cost of debt (interest rate) dropped.
This event has also shown the global recovery is not free‐and‐clear of roadblocks to
complete recovery. However, experts still anticipate rates will increase to between 6%
and 6.5% by the end of the year. As the recovery gains increasing traction, the Federal
Reserve will need to increase rates to prevent inflation.
One‐Year
Average
5.05%
Average Weekly Mortgage Rates
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
Affordability remains advantageous, supported by some of the lowest
mortgage rates in decades as well as less expensive home prices. The home
price‐to‐income ratio continues to remain well below the historical average
of 25%. The ratio now stands at 14.9%.
Historical Standard: 25%
Affordability as of April every year. Calculations assume a 20% down payment.
KW Research 8
Source: National Association of Realtors

9. Recent FHA Turns to Lenders to
Government Action
10
Monitor Brokers
Brought to you by:
KW Research

10. FHA Turns to Lenders to Monitor Brokers
As the Federal Housing Administration (FHA), the
government agency that insures home loans, saw its ‐Insures home loans
market share rise to about one‐third of the mortgage ‐Certifies and
market last year, up from 2% in 2006, the number of oversee lenders
brokers seeking to arrange FHA‐backed loans has
mushroomed to 9,043 at the end of 2009 from 5,759 Lenders
just two years earlier. FHA
The agency, finding itself inadequately equipped to
monitor its brokers, is shifting the responsibility to its
lenders.
The FHA expects the new policies to result in better Brokers ‐Make mortgage
risk management, and the cut in red tape should ‐Underwrite loans
produce better rates for consumers. mortgages ‐Sponsor and
‐Act as middlemen oversee brokers
As of May 20, the FHA no longer certifies mortgage between lenders
brokers or tracks the performance of brokers’ loans. and borrowers
Instead, lenders are now required to sponsor brokers
and assume responsibility for loans they originate,
including losses from fraud or mistakes in
underwriting. In addition to revamping broker insight,
the agency also beefed up oversight of its lenders by
increasing net‐worth requirements to $1 million from
$250,000. The change is in effect for one year for
existing lenders. Borrowers
Source: The Wall Street Journal KW Research 10

11. Topics for Home
Buyers, Sellers, and Myths about Distressed
Properties – Debunked!
12
Owners
Brought to you by:
KW Research

12. Myths about Distressed Properties –
Debunked!
Distressed properties – foreclosures and short sales alike – represent potentially great value
for prospective buyers. However, common misconceptions about the time and money
investment involved with buying such properties may keep many from inquiring further
into this market. KW Research survey findings, taken from more than 2,500 KW
associate respondents who have worked with distressed properties, can help steer clear
of concerns as you make your way to homeownership.
3 out of 5 REO buyers and 1 in
every 2 short sale buyers spent less
It’s going to take forever to than one month searching for a
find one I want home before writing an offer.
How many offers do I have to 7 out of 10 distressed
write before one gets property buyers wrote
accepted? 10? 20? three or fewer offers
before one was accepted.
I know I am getting a good deal Half of REO buyers and
but will the cost of repairs eat almost one‐third of short
up the savings? sale buyers spent less
than $5,000 in repairs.
Have questions or want to learn more about distressed properties in your local area,
KW Research 12
just ask your local Keller Williams associate!

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 your KW associate for assistance interpreting the
conditions in your local market.
KW associates are equipped with the knowledge and information to help you
navigate through the home‐buying or selling process in this challenging
market.
KW Research 13

14. Local Market Absorption Rate
KW Research 14

15. Number of Homes “in play”
KW Research 15

16. Avg Price per sq ft
KW Research 16

17. Sold to List Price Comparison
KW Research 17

18. Avg Price For Sale VS Sold
KW Research 18

19. About Keller Williams Realty
Founded in 1983, Keller Williams Realty, Inc., is an international real estate
company with more than 77,000 associates and 677 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 in its family culture, unmatched
education, profit sharing business model, phenomenal coaching program, and
technology offerings.
www.kw.com
KW Research 19

20. 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 20

21. 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 21

22. 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 22

23. 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/
– 1 Grover Court in Grafton – http://1groverct.com
– 416 Winckles Street in Elyria – http://416wincklesst.com
– 149 Woodview Drive in Elyria – http://149woodviewdr.com
– 2815 West River Rd South in Elyria – http://2815WRiverRdS.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 23

24. 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 24

25. 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 25

26. 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
• Call Paul directly at 440‐385‐5650.
• No cost. No commitments. No obligations. No fuss. No
kidding.
KW Research 26

27. Follow Paul on line…
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.linkedin.com/in/paulwdrury
• www.trulia.com/profile/paulwdrury
On the Real Estate Global
Network
• www.realestateglobalnetwork.com/profile/PaulWDr
ury
KW Research 27