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This Month in Real Estate, September 2001, is brought to you by Paul W. Drury, Real Estate Broker with Keller Williams Realty Greater Cleveland West. It is a collection of national news, information, and statistics as well as information specific to the North Central Ohio Region between Lakewood and Sandusky and south to the Lodi / Ashland Area.
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Commentary 2Released: The Numbers That Drive Real Estate 3
Topics for Home Buyers, Sellers, and Owners 8
Released:September 2011
Brought to you by:
KW Research
CommentaryThe U.S. housing market has shown notable stability in 2011 compared to the previous two years when the tax credit made a clear impact. Although recent economic indicators have been less than expected, including a downward revision of GDP and consumer confidence p , gthat mirrors early 2009, owning a home is still valued by the majority of Americans. 72% of renters say owning is a top priority for their future, up from 68% a year earlier.
However, most aspiring homeowners are held back by two main factors: funds for a down payment (82%) and confidence in their job security (80%). Federal Reserve Chair Ben Bernanke emphasized the importance of a healthy housing market to a robust recovery. He stressed the adverse effects of tighter credit conditions for borrowers urging Congress tostressed the adverse effects of tighter credit conditions for borrowers, urging Congress to take tax and policy measures to help stabilize the market. He also noted the significance of addressing long-term fiscal policies including debt levels, upcoming expenses to support an aging population, and taxes.
Buyers continue to benefit from historically favorable buying conditions, and sellers are encouraged by increased market stability. Although the Fed made a commitment to keep its interest rate at the current level until mid-2013, mortgage rates can, and often do, still fluctuate. In the midst of these reports, it is important to keep in mind the path to recovery was always expected to be a long and uneven road. As we progress toward a stronger recovery economic improvement typically spurs rising interest rates in order to keep
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recovery, economic improvement typically spurs rising interest rates in order to keep inflation in line.
Sources: National Association of Realtors, Bloomberg, The Wall Street Journal
Home Sales 4
Home Price 5The Numbers That Home Price 5
Supply of Inventory 6
Mortgage Rates 7Drive Real Estate
g g
Brought to you by:
KW Research
Home SalesIn MillionsIn Millions
Home sales in July were up by 21% from the same month last year when the expiration of the tax credit resulted in a significant drop in sales. However, they were down 3.5% compared to June. This could be due in part to NAR’s report that 16% of members experienced a contract failure from issues in underwriting and appraisals during July. NAR President Ron Phipps states, “For both mortgage credit and home appraisals, there’s been a parallel pendulum swing from very loose standards which led to the housing boom to unnecessarily restrictive practicesfrom very loose standards, which led to the housing boom, to unnecessarily restrictive practices as an overreaction to the housing correction.”
Original Tax Credit Scheduled to
Expire
Expanded T C ditTax Credit
Expired
KW Research 4Latest Data Release: August 18, 2011Source: National Association of Realtors
Home PriceIn ThousandsIn Thousands
Home prices dipped by less than 1% in July with median home price at $174,000. This is 4.5% below the year-ago level which followed a strong spring season of sales driven by the taxbelow the year-ago level which followed a strong spring season of sales driven by the tax credit. Median home prices remain close to 2002–2003 levels. Distressed sales continue to count for almost 1 in 3 homes sold. The combination of low prices and record-breaking low interest rates means that home affordability is extremely favorable.
KW Research 5Latest Data Release: August 18, 2011Source: National Association of Realtors
Supply of InventoryIn MonthsIn Months
The supply of homes measured in months on the market at their current pace of sales was up slightly during July compared to June This is in keeping with historical trendswas up slightly during July compared to June. This is in keeping with historical trends, which show that inventory levels typically rise during the summer months. The month’s supply remained 25% below the peak of 12.5 months in July 2010 and 13% above April of 2010 when the home buyer tax credit was in full swing.
Tax Credit
Expired
KW Research 6Latest Data Release: August 18, 2011Source: National Association of Realtors
Mortgage Rates30-Year Fixed
Mortgage rates hit a new record low in August of 4.15%, primarily due to uncertainty in the global and domestic economies. While these incredible rates represent a significant savings
30 Year Fixed
global and domestic economies. While these incredible rates represent a significant savings for home buyers, experts note that for the benefits to be fully 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
f t it f b t l k i th hi t i ll l i t t t ill t l t fof opportunity for buyers to lock in these historically low interest rates will not last forever.
Type RateType Rate30-Year Fixed 4.22%15-Year Fixed 3.39%5 ea ed 3 39%5/1 ARM 2.96%Historical Average 8.90%
KW Research 7Source: Freddie Mac; September 1, 2011
Topics for Home Buyers, Sellers, p y , ,and Owners
Brought to you by:
KW Research
Home Updates
As the weather gets cooler, some homeowners could be considering undertaking home renovations or updates before the holiday season. Here are a few findings about updates and home sales:
•Homeowners typically spend considerably more on updates to their home when planning to live in and enjoy it with an average of nearly $9 000to live in and enjoy it, with an average of nearly $9,000.
•In contrast, they only spend an average of $3,400 when making updates in preparation to sell.
•The most common updates sellers performed before listing were paint, flooring, and light fixtures.
•Although the majority of buyers were least likely to compromise on the location, 16% were least likely to compromise on updates.
% f f•75% of homes sold were either fairly updated or very updated.
•Sellers began repairing their home 1 to 8 weeks in advance of listing.
KW Research 9Source: KW Research
National Stats – Existing Home Salesg
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National Stats – Unemployment Ratep y
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National Stats – Consumer Confidence
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National Stats – Consumer Borrowingg
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National Stats – Regulator Hiring Boomg g
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National Stats – Construction Spendingp g
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National Stats – Housing Supplyg pp y
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National Stats – Housing Startsg
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National Stats – New Home Sales
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Your Local Market
Alth h it i i t t t t i f d b t h t i i i thAlthough 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
k t
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market.
Your Local Real Estate MarketYour 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 ftg p q
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Sold to List Price Comparisonp
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Avg Price For Sale VS Sold
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Investors & Shoppers – Foreclosure WatchppNORTH 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”?A l ki f h f l ?• Are you looking for a home for someone else?
• Find your next opportunity in our updated foreclosed homes list (http://bit.ly/mYYbIq)
• The link is also available on http://wwwcommunityohio com/realestate php• The link is also available on http://www.communityohio.com/realestate.php
Shoppers• Want to know what is happening in your marketplace?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/qc7pZv).• Send Paul an email today and request free market and location updates at
l@d [email protected]• Call Paul directly at 440‐385‐5650.
N t N it t N bli ti N f N d N kiddi
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• No cost. No commitments. No obligations. No fuss. No drama. No kidding.
About Keller Williams Realty
Founded in 1983, Keller Williams Realty is an international real estate company ith th 80 000 i t d 686 ffi th U it d St t dwith 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. g g p y p y p yBy 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 technologyprofit sharing business model, phenomenal coaching programs, and technology offerings.
www.kw.com
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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 ClevelandWest “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
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• Paul's Home Page ‐ http://www.druryrealty.com
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
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What we have to offer sellers ( Cont’d)
• Other tools brought to bear by Paul include b di i i b dd ithbranding using unique web addresses with a virtual tour that can be emailed or the link can posted anywhere to include Craig’s List and Backposted anywhere, to include Craig s List and Back Page. – http://www.listingpromoterohio.com/MyListings.aspx?pid=23771p gp y g p p– 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.
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cost. No obligation.
Properties currently for saleope t es cu e t y o sa e
• Premium residential properties currently for sale:13951 Di l R d i L– 13951 Diagonal Road in Lagrange – http://13951DiagonalRd.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‐, g , y385‐5650.
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What we have to offer buyersy• Buyers of Real Estate also have access to tools
unimaginable just a few years before Since Keller Williamsunimaginable 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.communities.
• Free Real Estate Informational Webinars available by ylogging 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 ownand 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 nationthe 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 seenew 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
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pwww.communityohio.com
Follow Paul’s Real Estate updates online…p
Home Web Page On Twitter• www.druryrealty.com
On Zillow
• ‐ www.twitter.com/PaulWDrury
On FaceBook• www.zillow.com/profile/PaulWDrury
On Trulia
On FaceBook• ‐ www.facebook.com/paul.w.drury
On LinkedInOn Trulia• www.trulia.com/profile/paulwdrury
O th R l E t t Gl b l
On LinkedIn• www.linkedin.com/in/paulwdrury
Free Real Estate WebinarsOn the Real Estate Global Network
• www.realestateglobalnetwork.com/profile/PaulWDrury
Free Real Estate Webinars• http://budurl.com/druryvideos
Drury
On YouTube• wwwyoutube com/user/MrPDrury
Special Discounts Links• http://bit.ly/ffvZOr
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• www.youtube.com/user/MrPDrury
Social Networking on FacebookSocial Networking on FacebookF b k “N th C t l Ohi R l E t t• Facebook – “North Central Ohio Real Estate Consulting, News, and Stats”
• https://www.facebook.com/pages/North-Central-Ohio-Real-Estate-p p gConsulting-News-and-Stats/164210080283714
Facebook “North Central Ohio Real Estate• Facebook – “North Central Ohio Real Estate Investments”
• https://www.facebook.com/pages/North-Central-Ohio-Real-Estate-gInvestments/145904528811383
• Facebook – “Community Information, News, andFacebook Community Information, News, and Savings for Ohio”
• https://www.facebook.com/pages/Community-Information-News-and-Savings-for-Ohio/100692843343793
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and-Savings-for-Ohio/100692843343793
Social Networking on TwitterSocial Networking on Twitter
• @PaulWDrury “North Central Ohio Real Estate Consulting”g
• “http://www.twitter.com/PaulWDrury”
• @CommunityOhio“htt //t itt /C it Ohi ”• “http://twitter.com/CommunityOhio ”
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Paul’s special vendor deals of the month…p
Now advertising properties, features, and discounts on• http://www.communityohio.comhttp://www.communityohio.com• Featuring outstanding deals from the following vendors
• Amazon.com • Franklin Covey Supplies• GoDaddy Domain Sale• ESET Internet Security Software
• Intuit Quickbooks• Executive Book SummariesSoftware
• NewEgg Electronics Superstore
Summaries• RubberMaid Products• Build my Move Moving p
• E‐fax Electronic Fax Service
• TomTom GPS Poducts
y gServices
• eBatts discount battery services• TomTom GPS Poducts
• DocuSign Electronic Document Service
services• Bulb America Light Bulb Supplier
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• Magazine Mall
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 Kellerprofessional 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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