Real estate reality, plus advice for newbies
Explore housing trends in this real estate snapshot, according to Ryan Keough.
Ryan Keough welcomes potential buyers to an open house.
What’s the biggest concern in the real estate market right now? Why are so few homes available for sale? How likely is a crash? What can we learn from the 2008 recession?
Florida real estate agent and broker Ryan Keough answers questions like these every day. He starts with a bit of history.
“Our inventory of actual homes and homes for sale is at an all-time low,” Ryan said. “During the crash of 2008, and as early as 2007, builders stopped building. For about a decade, the U.S. underbuilt homes despite the population growing significantly ever since.”
The U.S. population has grown by more than 9% since 2008, to 331,893,745 in 2021. This increase and the decrease in available homes are driving significant industry growth. They’re also driving competition. Today inventory sits just over one month, thanks to what experts estimate is a 5 million single-family home shortage across the nation.
“Watching three values: the inventory shortage, the U.S. housing shortage, and the price of homes for rent provide a good indicator of what’s likely to happen in the market,” Ryan said. “Traditionally, people won’t pay much more to own a home than to lease a similar property. Home prices will continue to reflect the trend in rental prices.”
Despite the rising cost of lending, the high consumer price index, the Fed’s Federal Open Market Committee’s recent interest rate hike, and the threat of a recession, demand for homes remain steady. So steady that many new and first-time homebuyers are having difficulty finding their dream home.
According to Ryan, seeking that “dream” home is also problematic.
“My advice to first-time homebuyers is to be patient, prepared, and ready to act quickly,” he said.
Hallmark advice such as seeking a pre-approval, ensuring finances are in order and gaining an idea of what a buyer can afford still stand today. Ryan adds that having a strong realty and lending team is instrumental in helping buyers determine their comfort zones and make a winning offer.
But that’s not all. Ryan also encourages buyers to have realistic expectations.
“Most first-time homebuyers get caught up in the emotions of wanting their dream home,” he said. “I try to help them think about their purchase as an investment. Their first home doesn't need to be—and often won’t be—their forever home.”
He added, “There’s a significant benefit to gain from starting small and making continued, smart, investment-driven decisions. In the end, these buyers usually find themselves in a good position when they cash out.”
Contact Ryan Keough with The Heroes Group at True Floridian Realty for more market insights and real estate advice.
