The document provides commentary on recent trends in the US housing market. It discusses how home sales have risen above year-ago levels for the first time since the home buyer tax credit expired, indicating continued recovery without government support. It also notes that while home prices softened slightly in January due to higher distressed home sales, mortgage rates and prices remain favorable for buyers. Housing inventory continues to decline while months of housing supply dropped to its lowest level in over a year. The document also summarizes upcoming increases to Federal Housing Administration mortgage insurance premiums.

1. Commentary 2
Released:
The Numbers That Drive Real Estate
h b h i l 3
March 4, 2011
Recent Government Action 10
Topics for Home Buyers, Sellers, and Owners
Topics for Home Buyers Sellers and Owners 13
Brought to you by:
KW Research

2. Commentary
Gradual progress in the housing market continues at a steady pace 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 continues to shrink and sales continue to rise. 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.
end of 2012 buyers are moving off the sidelines and into the market
A good sign for long‐term market stability is that the median down payment on conventional
mortgages has risen to 22%, up from 4% in 2006 and slightly above the 20% standard in the 1990s.
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This may keep buyers looking in slightly lower price ranges, but it is a good sign of future sustainability
for homeowners and banks alike. There are still ample opportunities for those who would like down
payments below 20%, including some conventional mortgages and those backed by the Federal
Housing Administration, Veterans Affairs, and the Department of Agriculture’s Rural Development
H i Ad i i t ti V t Aff i d th D t t f A i lt ’ R l D l t
loans.
As the economy improves, stimulus efforts by the government and the Federal Reserve Board will
As the economy improves stimulus efforts by the government and the Federal Reserve Board will
gradually wind down, which typically means 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
Inventory 6
Drive Real Estate Mortgage Rates 8
Affordability 9
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KW Research

4. Home Sales
In Millions
In Millions
The increasing trend in existing home sales activity continued through January, and for the first time
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rose above year‐ago levels when the home buyer tax credit was in effect. This marks the sixth
monthly increase since July when the tax credit expired, and indicates a recovery that’s gaining a
firmer footing without government support.
Extended and Expanded Home Buyer Tax Credit Second Gradual Recovery Without
Renewed November 7, 2009 Tax Tax Credit
Must have had contract signed by April 30, 2010 Credit
Must have close by June 30, 2010
M h l b J 30 2010 Expired
January ’10‐’11
January ’09‐’10
Latest Data Release: February 23, 2011
Source: National Association of Realtors
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5. Home Price
In Thousands
In Thousands
Home prices softened in January with median home prices decreasing slightly to $158,800 ‐ 3.7%
below the year‐ago level. Contributing to this is a larger share of distressed homes sales, which
below the year‐ago level Contributing to this is a larger share of distressed homes sales which
accounted for 37% of sales in January compared to 30%‐35% throughout much of 2010. Prices and
mortgage rates remain favorable for buyers.
January ’10‐’11
Latest Data Release: February 23, 2011
Source: National Association of Realtors
KW Research 5

6. Inventory ‐ Number of homes available for sale
In Millions
In Millions
Housing inventory continues to contract. There are now 3.38 million homes on the market, down
5.1% from December and only 3% above year‐ago levels. More and more buyers are taking
5 1% from December and only 3% above year‐ago levels More and more buyers are taking
advantage of today’s exceptional affordability conditions. Expected improvements in lending
standards and job growth will create great opportunities for buyers and investors.
January ’09‐’10
January ’10‐’11
Latest Data Release: February 23, 2011
Source: National Association of Realtors
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7. Supply of Inventory
In Months
In Months
The uptick in home sales and a shrinking inventory pared down the month’s supply to 7.6 months,
a decrease of 7.3% from December and 1% from year‐ago levels. This is the lowest level in more
a decrease of 7 3% from December and 1% from year‐ago levels This is the lowest level in more
than a year and marks the first time since July that the month’s supply is below where it was the
previous year. Months of inventory has declined steadily (64%) from its peak of 12.5 months in
July and is now back to pre‐tax credit expiration levels. The supply of inventory is not far from a
seller’s market, which is less than 6 month’s supply.
January ’09‐’10
January ’ 10‐’11
Latest Data Release: February 23, 2011
Source: National Association of Realtors
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8. Mortgage Rates
30 Year Fixed
30‐Year Fixed
Mortgage rates jumped above 5% for the first time since April 2009 in January. While rates dipped
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back to just below 5%, they are expected to continue 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.
Source: Freddie Mac KW Research 8

9. The percentage of a median family’s income required
Affordability ‐ to make mortgage payments on a median‐priced home
Percentage of Income
Percentage of Income
Housing affordability hit a new record in January. 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 January every year. Calculations assume a 20% down payment.
KW Research 9
Source: National Association of Realtors

10. Recent FHA to Increase Insurance Premiums
FHA to Increase Insurance Premiums 11
Government Action
Brought to you by:
KW Research

11. FHA to Increase Insurance Premiums
The Federal Housing Administration (FHA) will be increasing mortgage insurance
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premiums that its borrowers pay each year by 0.25% starting April 18, 2011.
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Loans backed by the FHA currently account for more than one‐third of all new loans,
up from only 2% in 2006. The FHA has taken several steps to strengthen its financial
standing since September 2009, when it indicated that reserves would fall below the
2% minimum. Measures taken in January 2010 include raising the upfront insurance
2% minimum. Measures taken in January 2010 include raising the upfront insurance
fees by 0.5%, capping seller contributions to buyers closing costs at 3%, down from 6%,
and requiring a higher down payment for those with poor credit.
As the FHA remains a great option among first time home buyers, those with smaller
down payments, and those with spotty credit, its strength and continued viability of
down payments and those with spotty credit its strength and continued viability of
FHA is key to the housing market. Upcoming changes to FHA insurance premiums also
mean that buyers who are out looking and who intend to use FHA financing will want
to finalize their deal and close before April 18.
Sources: The Wall Street Journal, Bloomberg, Forbes KW Research 11

12. Topics for Home Buyers,
p y , Preparing to Sell 13
Sellers, and Owners
Brought to you by:
KW Research

13. Preparing to Sell
Preparing your home for sale in a buyer’s market can seem daunting, but these five tips will help you
get the best price in the least amount of time.
1. Organizing and cleaning is crucial when prepping a home for sale. Potential home buyers have a
more positive reaction to homes that are clutter‐free and give them the feeling that the home is
“move‐in ready ”
move in ready.
2. Presale home inspection can inform you of any trouble areas within your home that can stand
out to potential buyers. An inspection can also help you make any repairs necessary before
future open houses.
3. Determine replacement estimates before listing your home, even if you are not planning on
making the replacements yourself. This information can help buyers to make informed decisions.
making the replacements yourself This information can help buyers to make informed decisions
4. Have your warranties ready – especially for all those home appliances that will stay within the
home after the sale.
5. Curb appeal is a crucial factor because it determines first impressions. A negative first
impression can cloud their entire opinion about the home.
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14. Your Local Market
Although it is important to stay informed about what is going on in the national
Alth h it i i t tt t i f d b t h ti i i th ti l
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
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 14

15. Your Local Market
Your Local Market
KW Research 15

16. Local Market Absorption Rate
KW Research 16

17. Number of Homes “in play”
KW Research 17

18. Avg Price per sq ft
KW Research 18

19. Sold to List Price Comparison
KW Research 19

20. Avg Price For Sale VS Sold
g
KW Research 20

21. 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
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.
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 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,
education profit‐sharing business model phenomenal coaching programs
and technology offerings.
www.kw.com
KW Research 21

22. About Paul W. Drury
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• Originally licensed as an agent in Ohio in 1986, Paul began with
Lehman Johnson Real Estate in Elyria. He acquired his Real Estate
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
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
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,
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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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
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
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 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
b di i i b dd ith
virtual tour that can be emailed or the link can
posted anywhere, to include Craig s List and Back
posted anywhere to include Craig’s List and Back
Page.
– http://www.listingpromoterohio.com/MyListings.aspx?pid=23771
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– 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?
your neighborhood or area?
– Contact Paul now for a free periodic market update. No
cost. No obligation.
cost. No obligation.
KW Research 24

25. Properties currently for sale
ope t es cu e t y o sa e
• 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
13951 Diagonal Road in Lagrange – htt //13951Di lRd
– 1 Grover Court in Grafton – http://1groverct.com
• Would you like to see one of these homes? Click on the link
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for a visual tour.
• Check out our YouTube Channel at
http://www.youtube.com/user/Mrpdrury
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• Would you like your home or property promoted like
these?
th ?
– Contact Paul for a free, no obligation, consultation today
at 440 385 5650.
at 440‐385‐5650
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26. What we have to offer buyers
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• Buyers of Real Estate also have access to tools
unimaginable just a few years before. Since Keller Williams
i i bl j t f b f Si K ll Willi
doesn’t spend its money promoting its own name, it puts
its resources into providing the best tools and resources to
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
KW Research 26

27. 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
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.
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
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. www.communityohio.com
KW Research 27

28. Investors & Shoppers – Foreclosure Watch
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• Are you shopping for the deal of a century for your
new home?
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• Are you in the market to buy a home at a steep
discount and try and fix it up and “flip it”?
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• Are you looking for a home for someone else?
• Want to know what is happening in your marketplace?
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• Send Paul an email today and request free market
updates at paul@druryrealty.com
• Call Paul directly at 440‐385‐5650.
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• No cost. No commitments. No obligations. No fuss. No
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kidding.
KW Research 28

29. Follow Paul’s Real Estate updates online…
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Home Web Page On Twitter
• www.druryrealty.com • ‐ www.twitter.com/PaulWDrury
On Zillow On FaceBook
On FaceBook
• www.zillow.com/profile/PaulWDrury • ‐ www.facebook.com/paul.w.drury
On Trulia
On Trulia On LinkedIn
On LinkedIn
• www.trulia.com/profile/paulwdrury • www.linkedin.com/in/paulwdrury
On the Real Estate Global
O th R l E t t Gl b l Free Real Estate
Free Real Estate
Network Webinars
• www.realestateglobalnetwork.com/profile/PaulWDru
ry • http://budurl.com/druryvideos
On YouTube Special Deal Links
• www.youtube.com/user/MrPDrury
www youtube com/user/MrPDrury • http://bit.ly/ffvZOr
KW Research 29

30. Paul’s special vendor deals of the month…
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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
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Superstore • Build my Move Moving
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• E‐fax Electronic Fax Services
Service • eBatts discount battery
• TomTom GPS Poducts
TomTom GPS Poducts services
• DocuSign Electronic • Bulb America Light Bulb
Document Service Supplier
• Magazine Mall
KW Research 30

31. 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
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 31