Monthly Newsletter published jointly by Paul W. Drury and Keller Williams Realty with the intent to provide National and Local Real Estate News to Paul\'s Clients, Customers, and other casual contacts.

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

2. Commentary
The housing market continues its gradual recovery without the aid of the tax credit.
Sales are slower but growing. Although it will likely be uneven at times, slow growth is g g g y , g
believed to be the trend moving forward. Interest rates hit a new historic low again, a
major factor in helping keep mortgage payments incredibly affordable.
Extended periods of record low interest rates and further plans from the Federal Reserve
Board to expedite recovery have some concerned about future inflation. One such
investment guru, John Paulson, touted the benefits of owning real estate as a hedge g , , g g
against inflation on Forbes.com. “Your debt and interest payments get locked in at
record lows, while the price of your home will rise … If you don’t own a home buy one …
if you own one home, buy another one, and if you own two homes, buy a third and lend
your relatives the money to buy a home.”
This march back up continues to provide excellent opportunities: an ample selection of
h ff d bl i d hi t i ll l i t t t E t ti i t b th thhomes, affordable prices, and historically low interest rates. Experts anticipate both the
economy and the housing market will continue their paths on the way to a complete
recovery.
KW Research 2

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

4. Home Sales
In MillionsIn Millions
Home sales continued to rebound in September, increasing 10% compared to the previous month.
This builds on August’s gain of 7.6% that followed a large drop caused by the expiration of the
federal tax credit in July. Sales are expected to gradually grow as the market moves toward
recovery without government stimulus. The recent foreclosure moratorium has opened up
opportunities for short sales. Although it could make the near‐term “choppy at times,” industry
experts expect the overall trend to continue growing slowlyexperts expect the overall trend to continue growing slowly.
First‐Time Home Buyer
Tax Credit
S h d l d t i
Extended and Expanded Home Buyer Tax Credit
Renewed November 7
Tax
Credit Is
i d
Recovery Gaining
Without Tax Credit
Scheduled to expire
November 30
Must have contract signed by April 30
Must close by June 30
Expired
KW Research 4
Latest Data Release: October 25, 2010
Source: National Association of Realtors

5. Home Price
In ThousandsIn Thousands
After four months of prices remaining on par with year‐ago levels, September showed a slight
decline Last September distressed properties were 29% of all home sales; this September thatdecline. Last September distressed properties were 29% of all home sales; this September that
number rose to 35%. The larger proportion of distressed sales, which are typically discounted,
helps to explain the decline. While these discounted sales provide opportunities for buyers, sellers
look forward to the general trending upward of home price.
KW Research 5
Latest Data Release: October 25, 2010
Source: National Association of Realtors

6. Inventory ‐
In Millions
Number of homes available for sale
In Millions
There are fewer homes on the market again in September, representing 10.7 months of inventory.
While still at a relatively high level months of inventory shrank by nearly a month in SeptemberWhile still at a relatively high level, months of inventory shrank by nearly a month in September
from August’s 11.6 and nearly two months since the 12.5‐month supply in July. This continues to
represent an excellent opportunity for buyers and investors who have not yet taken advantage of
the abundant opportunities of the market including record low rates, an ample but shrinking
selection of homes, and highly affordable prices.
KW Research 6
Latest Data Release: October 25, 2010
Source: National Association of Realtors

7. Mortgage Rates
30‐Year Fixed
Mortgage rates once again set new record lows in early October to 4.19% and remained
below 4 3% throughout the month These historically low rates contributed to real savings
30 Year Fixed
below 4.3% throughout the month. These historically low rates contributed to real savings
for buyers. Furthermore, the longer the buyer owns the home, the greater the savings
they will realize. As economic activity gains momentum, rates will rise to keep inflation at
an acceptable level
30‐Year Average – 8.90%
an acceptable level.
1‐Year Average – 4.75%
KW Research 7Source: Freddie Mac

8. Affordability ‐
Percentage of Income
The percentage of a median family’s income required
to make mortgage payments on a median‐priced home
Percentage of Income
Housing remains at near‐record affordability levels, and prospective home buyers stand
to benefit from the lowest mortgage rates in decades, as well as advantageous hometo benefit from the lowest mortgage rates in decades, as well as advantageous home
prices. Housing is approximately 60% more affordable now than during the height of
the market.
Historical Standard: 25%
KW Research 8
Affordability as of September every year. Calculations assume a 20% down payment.
Source: National Association of Realtors

9. Recent Recent Foreclosure Concerns 10
Government Action
Recent Foreclosure Concerns 10
Brought to you by:
KW Research

10. Recent Foreclosure Concerns
Robo‐Signing Scandal ExplainedRobo Signing Scandal Explained
A newfound set of issues with foreclosures, often referred to as the robo‐signing scandal, has
received considerable attention in the media recently. So what do we really need to know?
• The scandal erupted when employees at the nation’s largest loan servicing companies admitted
to fraudulently signing or forging thousands of documents related to foreclosure proceedings,
without knowledge of the documentationwithout knowledge of the documentation.
• Many lenders have agreed to a temporary moratorium on the sale of bank‐owned properties,
while halting current foreclosure proceedings. Although some lenders halted foreclosures in all
states, this is predominantly the case in states where a judge’s approval is required to foreclose. , p y j g pp q
• The scandal is generally considered procedural in nature, stemming from an avoidance due
process. Actual debt amounts and delinquencies that would have warranted foreclosure
proceedings have not been called into question.
• While the timeframe for resolution of the current situation is not known, lenders and regulators
are assessing the situation as quickly as possible to assure borrowers that their rights will be
protected, as well as buyers of bank‐owned properties that a clear title will be conveyed.
A lt f th t t i f th ti ’ l t b k h d t d• As a result of the current moratorium, many of the nation’s largest banks have devoted
additional resources into the processing of short sales and loan modifications.
KW Research 10Sources: cnnmoney.com, wsj.com, washingtonpost.com, CitiGroup Global Markets “Foreclosures Gone Wild” Oct 12, 2010

11. Topics for Home Buyers, p y ,
Sellers, and Owners
Prime Time to Buy 12
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KW Research

12. Prime Time to Buy
7 Reasons Why Now Is a Great Time to Buy a Home7 Reasons Why Now Is a Great Time to Buy a Home
Recent history has reframed some of what had long been taken for granted
about buying a home Namely we’ve learned that even though buying a homeabout buying a home. Namely, we ve learned that even though buying a home
remains one of the best and safest investments available, a home should not
function as an ATM or a short‐term speculation strategy. So, where does that
leave us? A lot smarter able to recognize an opportunity when we see one andleave us? A lot smarter, able to recognize an opportunity when we see one, and
aware of the facts that point to now as the prime time to buy a home.
1.Home affordability is at an all‐time high. The median mortgage payment on
the median‐priced home, as a percentage of the median household income, is
lower than it’s been in a generation.
2 Mortgage rates are at rock bottom It’s hard to imagine interest rates going2.Mortgage rates are at rock bottom. It s hard to imagine interest rates going
much lower, and when they start to inch back upward, monthly payments and
total loan costs will spike upward.
3 H i b k h i Af d li i f 30 h h i3.Home prices are back on the rise. After declining for 30 months, home prices
are trending back upward. The time to get in the market is now.
KW Research 12

13. Prime Time to Buy (cont’d)
7 Reasons Why Now Is a Great Time to Buy a Home7 Reasons Why Now Is a Great Time to Buy a Home
4. Sellers are motivated. This means that buyers have the upper hand. Sellers4. Sellers are motivated. This means that buyers have the upper hand. Sellers
are fiercely competing among an excess of housing inventory, which often
means buyers have untold choices and negotiating power.
5 Fi i i dil il bl B k b k i th d d t l d5. Financing is readily available. Banks are back in the game and ready to lend
to well‐qualified buyers.
6. Owning vs. renting is increasingly favorable. Since 2009, the average
principal and interest payment has fallen below the average rental rates, and
the gap is now wider than it’s been in the past 22 years.
7 Homeownership is still at the core of the American Dream Owning a home7. Homeownership is still at the core of the American Dream. Owning a home
is critical to financial stability and wealth building. It’s a forced savings
account, a place to live, and a fabulous tax deduction.
For more detail, check out Keller Williams Realty’s 7 Reasons Why Now Is a
Great Time to Buy a Home! and The Wall Street Journal’s 10 Reasons to Buy a
Home.
KW Research 13

14. Your Local Market
Alth h it i i t t t t i f d b t h t i i i th ti lAlthough 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 theTalk 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.navigate through the home buying or selling process in this challenging market.
The following is a snapshot of the primary local market where Paul Drury
services
KW Research 14
services.

15. Local Market Absorption RateLocal Market Absorption Rate
KW Research 15

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

17. Avg Price per sq ftAvg Price per sq ft
KW Research 17

18. Sold to List Price ComparisonSold to List Price Comparison
KW Research 18

19. Avg Price For Sale VS SoldAvg Price For Sale VS Sold
KW Research 19

20. About Keller Williams Realty
Founded in 1983, Keller Williams Realty, Inc., is an international real estate
company with more than 81 000 associates and 686 offices across the Unitedcompany with more than 81,000 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 2009estate 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 andeducation, profit sharing business model, phenomenal coaching program, and
technology offerings.
www.kw.com
KW Research 20

21. About Paul W. Druryy
• Originally licensed as an agent in Ohio in 1986, Paul began with
Lehman Johnson Real Estate in Elyria He acquired his Real EstateLehman 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 withRealty 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 “Beingwhen 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 worknetworking 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
KW Research 21
• Paul's Home Page

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 valuableyears 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• 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• Free Real Estate Informational Webinars available by
logging onto this link… http://budurl.com/druryvideos
KW Research 22

23. What we have to offer sellers ( Cont’d)
• Other tools brought to bear by Paul include branding using
i b dd ith i t l t th t bunique web addresses with a virtual tour that can be
emailed or the link can posted anywhere, to include Craig’s
List and Back Page Recent homes soldList and Back Page. Recent homes sold.
– 37101 Hunter’s Trail in Avon – http://37101hunterstrail.com
– 2815 West River Road South in Elyria – http://2815WRiverRdS.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 NoContact Paul now for a free periodic market update. No cost. No
obligation.
KW Research 23

24. Properties currently for saleope t es cu e t y o sa e
• Properties currently for sale:
330 S d A– 3307 Sandy Lane in Avon – http://3307SandyLn.com
– 19593 Whitehead Road in Wellington ‐ http://19593whiteheadrd.com/
– 13951 Diagonal Road in Lagrange – http://13951DiagonalRd.com
– 1 Grover Court in Grafton – http://1groverct.com
– 416 Winckles Street in Elyria – http://416wincklesst.com
– 149 Woodview Drive in Elyria – http://149woodviewdr.comy p //
• Would you like to see one of these homes? Click on the link
for a visual tour.
• Would you like your home or property promoted like• Would you like your home or property promoted like
these?
– Contact Paul for a free, no obligation, consultation today g y
at 440‐385‐5650.
KW Research 24

25. What we have to offer buyersy
• Buyers of Real Estate also have access to tools
i i bl j t f b f Si K ll Williunimaginable 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 toits 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
KW Research 25

26. What we have to offer buyers (Cont’d)
• Buyers can access Paul’s website at www.druryrealty.com
d d h i h ll h iand 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 ofOhio. 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• 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 p p p
up on national websites such as Trulia providing for
greater access to search tools. http://bit.ly/aDE5XP
KW Research 26
p y

27. Investors & Shoppers – Foreclosure Watchpp
• Are you shopping for the deal of a century for your
h ?new home?
• Are you in the market to buy a home at a steep
d d d f d “fl ”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 y q
updates at paul@druryrealty.com
• Call Paul directly at 440‐385‐5650.y
• No cost. No commitments. No obligations. No fuss. No
kidding.
KW Research 27
g

28. Follow Paul’s Real Estate updates online…p
Home Web Page On Twitter
• www.druryrealty.com
On Zillow
• ‐ www.twitter.com/PaulWDrury
On FaceBookO o
• www.zillow.com/profile/PaulWDrury
On Trulia
• ‐ www.facebook.com/paul.w.drury
On LinkedInOn Trulia
• www.trulia.com/profile/paulwdrury
O h R l E Gl b l
On LinkedIn
• www.linkedin.com/in/paulwdrury
Free Real EstateOn the Real Estate Global
Network
• www.realestateglobalnetwork.com/profile/PaulWDru
ry
Free Real Estate
Webinars
• http://budurl.com/druryvideos
ry
KW Research 28

29. 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 on 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 informationdegree 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 29