What's Going to Happen with this Real Estate Market? - Part 1
Go Home TV went to Florida Atlantic University in Boca Raton to have an in-depth conversation with Ken H. Johnson, PhD, an economist and real estate researcher at FAU's College of Business, about current real estate trends in the market.
Host Dawn Pfaff, President of My State MLS, interviewed Ken about the latest hot topics in real estate. Topics that every real estate agent should know.
Time Code - Topic
00:52 - 01:23 Buy vs. Rent Index
"We do a Buy Versus Rent Index with a couple of other professors, Dr. Eli Beracha and Dr. Bill Hardin down at FIU. We've worked together for years and we look at 23 cities around the country and compare which is better to buy or rent in these 23 cities. It's very much like Case Shiller. The overlap of the metro areas are about the same. But the difference is we're comparing buying versus renting in those cities in terms of which way we'll create more wealth on average." - Ken H. Johnson
01:30 - 02:03 Best to Buy
02:10 - 03:02 Best to Rent
"I think the best place to rent versus buy right now is Dallas, Texas. Dallas is always high, it's probably number one in terms of renting." - Ken H. Johnson
See Related Story from the university research team: New Study Reveals Florida Dominates List of 25 Most Overvalued U.S. Rental Markets
01:10 - 04:53 Miami Market
"When you look at Miami, and by that we mean Miami, Broward, Palm Beach County in terms of ownership, it's relatively high in terms of a premium. In other words, where prices are compared to where they statistically should be. We measure that difference and we measure that as a premium. To live in Miami. We're at about a 27% premium currently compared to 2007 or 2008 - when that number was more like 79%." - Ken H. Johnson
Top 100 Housing Markets:
See this Related Story from the university research team: Strong Demand for Homes Bolsters Prices, Forcing Buyers Across the Country to Overpay
04:54 - 06:04 New York vs. Florida Prices
06:02 - 07:12 Migration - Permanent & Temporary
"We saw two types of migration. One is permanent, which I think the pandemic just accelerated what was already happening. We also have seen, we believe, a significant amount of temporary relocation. So if I'm in New York, Philadelphia, Chicago, and I have to work from home and I have to work in my apartment and I can't really go out of my apartment and do anything, I might as well work in Fort Lauderdale." - Ken H. Johnson
08:16 - 09:06 Pandemic Causing Home Demand Changes
"I'm going to live at home and I want to have my home flexible enough that I can work professionally from home. I need the right amount of bandwidth. I need the right atmosphere such as I don't have my dog barking in the background. I've got a soundproof in my office. Several things they have to do." - Ken H. Johnson
09:06 - 10:54 Boise, Idaho Most Overheated Market in Country
"Because of the population influx. Boise mostly escaped the downturn like several of the other cities did [in 2008], a few of the other cities did around the country. Since the last downturn, there's been this huge influx in population. This has been going on even pre-pandemic. And so we've seen prices run up significantly. And again, they're pricing above where they historically should be based on a history of prices." - Ken H. Johnson
10:54 - 11:47 How to Take Profit from Real Estate Now - Sell and Move Rural
11:53 - 13:09 Advice for Agents Right Now - Diversify like Property Management
"If I was back in business today, one of the things I would definitely be doing would have property management as part of my business portfolio. I would want to make sure that I'm managing some number of properties, if not just my own but others, because this will help me ride through any sort of downturn." - Ken H. Johnson
Click Here to Learn More About FAU's Real Estate Initiative and their Research
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