By Ana Good
Birmingham Association of Realtors President Keith Kelley describes himself as a principled man intent on always giving back.
The Anniston-area native and businessman held firm to his commitment to public service when, in March 2021, he announced his candidacy for the Republican nomination for Alabama Senate District 12. Kelley went on to win that race and subsequently defeated Democrat Danny McCullars in the general election a year later.
While enroute to Montgomery ahead of the March 7 legislative session, Kelley shared the details of his journey.
Kelley opened his first business at the age of 19. In 1992, wanting more control over his time so that he could be more involved in his kids’ lives as they grew, Kelley said he made the shift into real estate following years of operating several retail stores. The move felt natural, he said. His father was a builder, so he was around the business from a young age.
“We had a couple of rental properties,” Kelley said, “so I was familiar with the business to some degree.”
Once he obtained his real estate license, Kelley purchased Harris-McKay Realty — an Anniston staple since 1958 — and has served as president there for more than 26 years. Kelley said he decided not to change the company’s name because of its strong reputation in the community.
“We do residential, commercial and property management,” Kelley said. “It gets me around quite a bit.”
While continuing the everyday work at Harris-McKay, Kelley looked for other ways to serve. He fulfilled that calling with the Calhoun County Association of Realtors. The work did not stop in Calhoun County, however. After serving locally in all positions available, Kelley went on to serve as president of the Alabama Association of Realtors.
In 2010, following the BP Gulf of Mexico oil spill, Kelley said he took part in negotiations that helped result in a settlement for Alabama Realtors. He has also served as part of the National Association of Realtors’ board of directors.
Kelley said his company continues to do extensive commercial work in the Jefferson and Shelby County areas.
“We’ve built a pretty good portfolio of really doing real estate statewide,” he said.
Watching the Trends
As the chair for the Alabama Center for Real Estate at the University of Alabama, Kelley keeps up to date on the latest research in the field.
“We do research on housing trends, sales, construction, statistics,” Kelley said. “It is really helpful for a lot of what we do in the real estate industry. It allows you to see trends and plan on what is coming.”
The state-based research is particularly helpful, he said, because of the nature of real estate.
“Real estate is very much local, Kelley said. “When you see a nationwide article, the majority of the time, that’s not going to translate to the local area because the dynamics are very different.”
Asked to describe the current state of the market, Kelley gave a positive outlook. Just that morning, he’d spoken to a room full of new Realtors ready to enter the field. Kelley said the Over the Mountain areas especially are enjoying a “good, healthy market.”
“The projections are nationally and locally that there is going to be a tightening of the market,” he added, “a slowing down. It is coming, and we need to be prepared for it, but the market is still very good right now.”
Kelley said the industry was “a little bit spoiled with extremely low interest rates” before the recent increases and remembered a time in the business when interest rates were as high as 18%. Current interest rates are in the 5%-6% range, he said, depending on the type of loan.
“Usually if you are below 9%, it’s a good time to buy a home,” Kelley said. “There are projections that the Fed will increase again to help with inflation, but when it comes about, I’m not sure how it will affect the local market.”
Locally, Kelley said it is still a seller’s market in a lot of areas, as inventory remains down. The coronavirus pandemic, he said, changed the market significantly. Where once it was possible to watch and recognize patterns, COVID-19 upended that ability.
“We don’t really have a norm anymore,” Kelley said. “We are having to learn what the new normal is going to be.”
Generational Changes
Before COVID, many first-time buyers were in their 20s or early 30s, Kelley said. Those in their 50s and 60s usually were downsizing. Today, people are waiting into their late 30s to purchase their first homes.
Those who traditionally would have downsized are no longer able to do that, Kelley said, because either their children or elderly parents have moved in with them. These changes combined have led to a slowing of the market.
“There is a demand for more homes than there are on the market right now,” Kelley said. “We need more homes on the market, we need more of a balance of sellers and buyers in the market.”
When buyers do purchase a home, Kelley said, fewer are purchasing older, outdated homes.
“We are seeing a lot fewer people looking at a home with the idea of coming in and totally remodeling it, especially on the first-time homebuyer side,” he said. “They are wanting to buy a home that is exactly what they want, ready to go, nice and clean with modern amenities.”
This shift is a generational one, he said. As this new generation of buyers moves onto the real estate scene, Kelley said, he will be watching.
“One of the things people are forgetting is that real estate is still the best way to build wealth in our country,” he said. It’s a great investment. It will be interesting to see how the generations coming along now, if they view it that way or if they are wanting more temporary housing and remaining mobile.”
Kelley said despite the anticipated challenges, he recognizes the optimism in the industry and is glad to be president of the Birmingham Association of Realtors during these transitions.
“There’s a lot of good things happening in the industry,” Kelley said.
“There’s going to be a lot of changes over the next 4-5 years and trying to anticipate what those changes will be is where the challenge comes in. It’s where we’ve got our work cut out for us.”
