May 2011 issue of This Month in Real Estate. National News by Keller Williams Realty and North Central Ohio regional / local news by Paul W. Drury of Greater Cleveland West

1. Commentary 2
Released:
The Numbers That Drive Real Estate 3
May 2011
Recent Government Action 9
Topics for Home Buyers, Sellers, and Owners 11
Brought to you by:
KW Research

2. Commentary
Gradual and uneven progress in the housing market continues 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 and all‐cash sales continue to
skew the overall picture of home prices downward, inventory remains at pretax credit expiration
levels. As economists anticipate rates at or above 6% by the end of 2012, buying activity is expected
to continue its upward momentum.
Increasing signs of inflation have been a recent item of concern. Driven by unrest in the Middle East,
the retail price of gas has risen by 25% since the year began and 89% from this time two years ago.
In his first ever press conference, Federal Reserve Chairman Ben Bernanke noted the Fed believes
these price increases are transitory and will not have a major impact on the U.S. economy. However,
according to NAR’s chief economist, for each $10 per barrel rise in oil prices, $80 billion is removed
from the economy.
Bernanke stated that the Fed will keep a close eye on the impact of oil prices on the economy as it
considers policy changes. Although inflation is up for the first quarter, price gains excluding food and
fuel slowed in March, helping consumers to feel less constricted.
As the economy improves, stimulus efforts by the government and the Federal Reserve Board will
gradually wind down, which typically spurs rising interest rates to keep inflation in check. Meanwhile,
buyers continue to benefit from historically favorable buying conditions and sellers are encouraged
by increased market stability.
Sources: Bureau of Labor Statistics, Energy Information Administration, National Association of Realtors KW Research 2

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

4. Home Sales
In Millions
Home sales were up 3.7% in March compared to the previous month but were down 6.3%
compared to the same time last year when the impact of the tax credit was nearing its peak.
Gradual but uneven improvement is expected to continue. In fact, home sales have increased six of
the past eight months. The general trend of improvement remains a positive signal, as home sales
remain up 32% since the low in July and are down only 12% since the peak last April, which was
induced by the tax credit deadline of a signed contract by the end of that month.
Tax
Extended and Expanded
Credit Gradual Recovery Without Tax Credit
Home Buyer Tax Credit
Expired
March ’10‐’11
March ’09‐’10
Latest Data Release: March 21, 2011
Source: National Association of Realtors
KW Research 4

5. Home Price
In Thousands
Home prices rebounded 2.2% in March with median home prices rising to $159,600. This is 5.9% below
the year‐ago level and keeps the median price close to 2002 levels. Continuing February's trend, two
out of every five homes sold during March, or 40% of sales, were distressed properties, which typically
sell at a 10%‐20% discount. The decline in home prices is less indicative of individual home values and
more reflective of a large number of less expensive homes selling and bargains that are getting
snapped up. Investors represented 22% of sales, and all‐cash buyers were at a record high of 35% of
sales in March. Prices and mortgage rates remain favorable for buyers for the spring selling season.
March ’10‐’11
March ’09‐’10
Latest Data Release: March 21, 2011
Source: National Association of Realtors
KW Research 5

6. Supply of Inventory
In Months
The supply of homes measured in months on the market, if sales continue at their current pace,
remained stable compared to the previous month. This is the third‐lowest level since June.
Inventory levels remain 33% below its peak of 12.5 months in July and only slightly above where
it was last year when the tax credit was in full swing.
March ’09‐’10
March ’10‐’11
Latest Data Release: March 21, 2011
Source: National Association of Realtors
KW Research 6

7. Mortgage Rates
30­Year Fixed
After rising above 5% for the first time in ten months in early February, rates have remained stable in
the 4.8% range. They are still expected to follow 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 move quickly to take advantage of excellent buying conditions.
Type Rate
30‐Year Fixed 4.80%
15‐Year Fixed 4.02%
5/1 ARM 3.61%
Historical Average 8.90%
Source: Freddie Mac; April 21, 2011 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
Housing affordability continued at record levels in March. 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 March every year. Calculations assume a 20% down payment.
KW Research 8
Source: National Association of Realtors

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

10. Incentives to Purchase Fannie Mae Foreclosures
In order to encourage buyers to consider purchasing their foreclosures, Fannie Mae is offering up to
3.5% in closing cost assistance on Fannie Mae‐owned HomePath properties.
This is the second time in the past year Fannie Mae has offered assistance to buyers who purchase a
home from their sizable HomePath inventory. Since banks typically sell foreclosures “as‐is” without
incentives, warranties, or repairs, this incentive could help buyers view a HomePath property more
like a traditional sale, and less like a distressed property, during their search process.
Buyers should be sure to take a second look at Fannie Mae’s HomePath properties before settling on
“the one.”
Fannie Mae’s executive vice president of Credit Portfolio Management, Terry Edwards, says, “Since
interest rates remain low, the incentive will go a long way toward helping even more families buy a
new home. So this a great time for Fannie Mae to offer some assistance.”
Source: HousingWire.com KW Research 10

11. Topics for Home Buyers, Sellers,
and Owners
Brought to you by:
KW Research

12. Staging
Staging is an increasingly important component, not only in selling a home but also in
attracting would‐be buyers. Even with all of the commonly accepted advantages of
staging, only about 1 in 3 sellers stage their home.
The Internet is one of the main sources of information buyers use during the home
search process, and staging is key to showing the home at its best online.
Rooms that sellers stage most often:
1. Living Room: 73%
2. Kitchen: 64%
The average increase in list‐to‐sell in staged homes: 1.07%
3. Master Bedroom: 58% The average cost of staging: $250
4. Dining Room: 49% Potential benefit based on a $200,000 home:
5. Master Bath: 45% $3,150
6. All Rooms: 37%
7. Office: 16%
The cost of staging is minimal compared to the benefits: more showings and ultimately
a higher percentage of asking price.
KW Research 12

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 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
navigate the home‐buying or selling process in this challenging market.
KW Research 13

14. Your Local Market
KW Research 14

15. Local Market Absorption Rate
KW Research 15

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

17. Avg Price per sq ft
KW Research 17

18. Sold to List Price Comparison
KW Research 18

19. Avg Price For Sale VS Sold
KW Research 19

20. About Keller Williams Realty
Founded in 1983, Keller Williams Realty is an international real estate
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 second‐largest U.S. residential
real estate firm in 2010.
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,
and technology offerings.
www.kw.com
KW Research 20

21. 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 ‐ http://www.druryrealty.com
KW Research 21

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
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, 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
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 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.
– http://www.listingpromoterohio.com/MyListings.aspx?pid=23771
– 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?
– Contact Paul now for a free periodic market update. No
cost. No obligation.
KW Research 23

24. Properties currently for sale
• Premium residential properties currently for sale:
– 3307 Sandy Lane in Avon – http://3307SandyLn.com
– 13951 Diagonal Road in Lagrange – http://13951DiagonalRd.com
– 230 Ohio Street in Elyria – http://230OhioSt.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‐
385‐5650.
KW Research 24

25. 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.
• 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/eWXimO.
KW Research 25

26. 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.
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 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 www.communityohio.com
KW Research 26

27. Investors & Shoppers – Foreclosure Watch
NORTH 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”?
• Are you looking for a home for someone else?
• Find your next opportunity in our updated foreclosed homes list
(http://bit.ly/kl1MvN)
• The link is also available on http://www.communityohio.com/realestate.php
Shoppers
• 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/jrC5wa).
• Send Paul an email today and request free market and locatin updates at
paul@druryrealty.com
• Call Paul directly at 440‐385‐5650.
• No cost. No commitments. No obligations. No fuss. No drama. No kidding.
KW Research 27

28. Follow Paul’s Real Estate updates online…
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.trulia.com/profile/paulwdrury • www.linkedin.com/in/paulwdrury
On the Real Estate Global Free Real Estate Webinars
Network • http://budurl.com/druryvideos
• www.realestateglobalnetwork.com/profile/PaulWDr
ury
Special Discounts Links
On YouTube • http://bit.ly/ffvZOr
• www.youtube.com/user/MrPDrury
KW Research 28

29. Social Networking on Facebook
• Facebook – “North Central Ohio Real Estate Consulting,
News, and Stats”
• https://www.facebook.com/pages/North‐Central‐Ohio‐Real‐Estate‐
Consulting‐News‐and‐Stats/164210080283714
• Facebook – “North Central Ohio Real Estate Investments”
• https://www.facebook.com/pages/North‐Central‐Ohio‐Real‐Estate‐
Investments/145904528811383
• Facebook – “Community Information, News, and Savings for
Ohio”
• https://www.facebook.com/pages/Community‐Information‐News‐and‐
Savings‐for‐Ohio/100692843343793
KW Research 29

30. Social Networking on Twitter
• @PaulWDrury “North Central Ohio Real Estate
Consulting”
• “http://www.twitter.com/PaulWDrury”
• @CommunityOhio
• “http://twitter.com/CommunityOhio ”
KW Research 30

31. Paul’s special vendor deals of the month…
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
Superstore • Build my Move Moving
• E‐fax Electronic Fax Services
Service • eBatts discount battery
• TomTom GPS Poducts services
• DocuSign Electronic • Bulb America Light Bulb
Document Service Supplier
• Magazine Mall
KW Research 31

32. 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
contained in This Month in Real Estate.
KW Research 32