Birmingham’s 2016 real estate market in review and what to expect in 2017
The year of 2016 brought new trends and changes to the real estate industry. Advancements in technology and the increased opportunity in up-and-coming cities have sparked several emerging trends in the Birmingham market.
Millennial agents
According to the Birmingham Business Journal, young professionals are being drawn to careers in real estate due to the entrepreneurial nature of the business. The rise of the millennial real estate agent has sparked innovation, and has challenged even the most seasoned agents to step up their game and evolve their strategies. An increased use of technology and social media in order to share home listings and trends has allowed agents to predict what other millennials desire in prospective homes.
Millennial buyers
As the millennial generation is entering the home-buying phase of their lives, ARC has seen an increased attraction to areas like Crestwood, Forest Park, Avondale, Highland Park and Southside. However, these locations continue to suffer from a lower inventory of homes to suit the number of interested buyers. In 2017, we hope to see these areas continue to develop and provide more options to accommodate the increasing demand from first-time millennial homebuyers.
Social media
Social media and technology have transformed the real estate game over the past year. Agents have discovered the benefits of sharing listings through various social platforms and targeting prospective homebuyers through both geographic and demographic filters. This innovative way of marketing has allowed today’s agents to spend thousands less on home advertising when compared to the amount spent through traditional means such as brochures, billboards, yard signs, etc. ARC is beginning to see younger and older agents combine their expertise and work together to make sales, allowing the company to utilize the strengths of all agents.
Expectations for 2017
ARC Realty Chairman Tommy Brigham shares some of his expectations for Birmingham’s 2017 real estate market.
- Continued improvements in units sold and volume closed.
- Higher interest rates due to expected changes in the economy.
- Increase in first-time homebuyers, as well as a continued short supply of homes available on the market.
- Fertile lending environment for housing developments due to what might be a more business-friendly approach to banking and regulations.
We can expect to see developers trying to find new housing opportunities in Birmingham’s core marketplace. Some areas where opportunities will exist include:
- Parkside
- The University of Alabama at Birmingham (UAB)
- Downtown Birmingham
- Avondale
- Crestwood
- Woodlawn
Because of the significant investment by The Woodlawn Foundation, we can expect to see a revitalization of the Woodlawn community, much like what took place in Avondale 10 years ago. “Over the Mountain Communities,” such as Homewood, Hoover, Mountain Brook, Vestavia, and the Highway 280 and 31 corridor’s will continue to offer solid sales results, as well as continued stability and sales results in Gardendale, Trussville and the eastern markets.
Finally, because the lending environment is likely to improve, we will see more new home communities begin to emerge throughout the Birmingham metro area.
If you would like more information about Birmingham’s 2016 real estate market or 2017 expectations, or would like to speak with an ARC agent, call us at (205) 969-8910.
