This Month in Real Estate, a publication of Keller Williams Realty and Paul W. Drury of the Greater Cleveland West office.

1. Commentary 2
Released:
The Numbers That Drive Real Estate 3
April 9, 2010
Recent Government Action 9
Topics for Home Buyers, Sellers, and Owners 13
Brought to you by:
KW Research

2. Commentary
The economic recovery continues to slowly but steadily deepen its
roots. Consumer sentiment ticked up in March and it appears
businesses are feeling more positive as well. According to a
CEO Economic Outlook Survey, America’s top CEOs are
expecting an increase in sales, along with increased or stabilized
capital spending and employment.
Over the past several months, the hot topic of health care reform took much of
Congress’s attention. Now, with the bill passed into law, the government is turning its
attention to other matters to help bolster the economy including unemployment and
financial reform.
High unemployment and elevated levels of foreclosures and distressed homeowners
continue to be two of the biggest factors in preventing a robust recovery. The
government’s attentive attitude toward these obstacles is seen as a positive sign by
industry and economic experts.
KW Research 2

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

4. Home Sales
In Millions
Existing home sales softened in February. According to Lawrence Yun, NAR
chief economist, the widespread winter storms during the month may have
masked underlying demand as “buyers couldn’t get out to look at homes in
some areas and that should negatively impact near-term contract activity.”
February sales of 5.02 million remained 7 percent above the 4.69 million-
units last year.
Seasonally Adjusted Home Sales
Latest Data Release: March 23, 2010
Source: National Association of Realtors
KW Research 4

5. Median Home Price
In Thousands
The median price for an existing home was $165,100 in February, a 1.8
percent drop from February 2009. Distressed homes, which accounted for 35
percent of sales last month, continued to skew prices downward as they
typically were discounted in comparison with non-distressed homes.
Latest Data Release: March 23, 2010
Source: National Association of Realtors
KW Research 5

6. Inventory - Number of homes available for sale
In Millions
Total housing inventory rose 9.5 percent to 3.59 million, representing an 8.6-
month supply at the current sales pace. Compared to the previous year, there
were 5.5 percent fewer homes on the market.
5.5%
Number of Homes Available for Sale - In Millions decline
from last
year
Latest Data Release: March 23, 2010
Source: National Association of Realtors
KW Research 6

7. Mortgage Rates
30-Year Fixed
Mortgage rates dipped to 4.99 percent in February from 5.03 percent in
January. During the first week of April, rates crossed the 5 percent threshold
but still remained near historically low levels. While the full effect of the
Federal Reserve mortgage-backed securities purchase program’s expiration
at the end of March is yet to be seen, the Fed echoed its accommodating
policy to support the economy.
2009 Average
5.04%
Average Weekly Mortgage Rates
Source: Freddie Mac KW Research 7

8. The percentage of a median family’s income required
Affordability - to make mortgage payments on a median-priced
Percentage of Income
home
Affordability remains at record levels, supported by the lowest mortgage
rates in decades, low home prices, and the first-time home buyer tax credit.
The home price-to-income ratio continues to remain well below the historical
average of 25 percent. The ratio now stands at 14.2 percent.
Historical Standard: 25%
Well below the
historical
standard of
25%
Affordability as of January every year. Calculations assume a 20% down payment.
Source: National Association of Realtors
KW Research 8

9. Recent Mortgage Relief for the Unemployed
Helping Underwater Homeowners
10
11
Government Action Bill Encourages Hiring the Unemployed 12
Brought to you by:
KW Research

10. Mortgage Relief for Unemployed
Attempting to overhaul its foreclosure prevention program, the Obama administration
took noteworthy steps to help the unemployed stay current on their mortgage through
tough times.
While the trouble in the housing market originally started with loose lending practices,
high unemployment and underwater homeowners are now the major factors
contributing to foreclosure.
The program will now:
1. Require lenders to “slash” payments for the unemployed for 3-6 months. In some
cases, payments could be deferred entirely.
2. Cut payments to at least 31 percent of previous income, about the same amount
that unemployment insurance pays.
3. Become effective over the next 6 months.
4. Not require new taxpayer funds. The program has only used a
small portion of its $75 billion allocation.
Source: The Washington Post KW Research 10

11. Helping Underwater Homeowners
Underwater borrowers are one of the major driving forces behind foreclosure. It’s
estimated that one in four homeowners owes more than their home is worth.
Economists categorize these borrowers as “high risk” because they can’t sell or refinance.
The government is taking the following steps to address underwater borrowers:
1. Principal Reduction. Lenders will be asked to reduce the principal loan balance if it is 15
percent or greater than what the home is worth. This will only be available to borrowers who
are current on their mortgage payments and they will need to stay current to “earn” the full
reduction over three years.
2. FHA Refinancing. The Federal Housing Administration (FHA) offers refinancing alternatives
for borrowers who are underwater and offering incentives for lenders who reduce the
principal on primary mortgages by at least 10 percent.
3. Second Mortgages. The government will double the incentive amount paid to lenders who
help modify second mortgages. Half of all troubled homeowners have second
mortgages, which have been an obstacle in providing modifications.
4. Short Sales. Incentives to lenders who help troubled borrowers that don’t
qualify for the program, most commonly a short sale, have been increased.
Source: The Washington Post KW Research 11

12. Bill Encourages Hiring Unemployed
One of the biggest obstacles to greater stability in the U.S. economy and housing market is the
unemployment rate, which continues to hover just shy of double digits at 9.7 percent. The
government has plans to address the job market with a series of bills, the first of which aims to
boost hiring.
Key provisions of the bill are as follows:
1. Incentives to Hire. Employers who hire employees that were unemployed for at
least sixty days will get a break on those employees’ 6.2 percent social security tax
through the end of 2010.
2. Incentives to Retain. Employers who keep employees for at least a year will get a
$1,000 bonus.
3. Cost. The expected cost is $13 billion.
4. Result. Experts anticipate the bill creating 234,000 jobs that would otherwise not
happen.
Increased hiring, particularly for those who have been out of work for some time, will increase
employees’ ability to stay current with housing payments and bills in addition to expanding their
spending power, adding stability to the housing market and boosting the economy.
Sources: The New York Times, Bloomberg News KW Research 12

13. Topics for Home
Buyers, Sellers, and Energy-Efficiency Tax Tips 14
Owners
Brought to you by:
KW Research

14. Energy-Efficiency Tax Tips
Three Things You Need to Know About Home Improvements
to Help Slash Energy Bills and 2010 Taxes
1. Simple qualifying improvements include increasing insulation or insulating items
such as door and windows, roofing, skylights, etc. These qualify for a 30 percent
credit on the cost of the item, not installation, up to a maximum credit cap of
$1,500.
2. Certain big-ticket items have no maximum credit cap. The credit is still 30 percent
of the cost of the item. These items include furnace, air conditioning, tankless water
heater, heat pump, geothermal system, solar or wind installation.
3. It’s a tax credit, not a deduction. That means it reduces the actual taxes you owe,
not your taxable income. Use IRS Form 5695, and hang onto receipts and product
labels.
Don’t forget to check your state and local area for additional incentives.
For more info on the federal tax credit, check out: EnergyStar.gov and NAHB.org/efficiencytaxcredit.
This is general information and is not intended to be tax advice; see a professional for specifics and advice.
KW Research 14

15. 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 area.
Talk to your Keller Williams agent for assistance
interpreting the conditions in your local market.
Keller Williams associates are equipped with all the knowledge and
information to help you navigate through the process of buying or selling a
home in this challenging 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
KW Research 20

21. About Keller Williams Realty
Founded in 1983, Keller Williams Realty, Inc., is an international real estate
company with more than more than 77,000 associates and 677 offices
located across the United States and Canada. The company began
franchising in 1991, and following 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 shares
its knowledge, policy control, and company profits on a system-wide basis.
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 21

22. 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 22

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 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 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 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 24

25. 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
• 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 25

26. 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 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
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 27

28. 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 28

29. 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 29