Our local real estate market in the Greater Birmingham Area really started to pick up steam in 2013 and 2014. We started seeing prices level out, or rise modestly, in most areas. And the balance of buyers and sellers evened out as well. Some areas had, and still do have, a shortage of listings.
2015 was no different. Purchases were fueled by good news both locally and nationally. It was a well balanced market, but last year was met with many changes in our industry that slowed agents, lenders, and attorneys down just a little bit. In our immediate area, the entire MLS changed over to the Paragon MLS System in the middle of the year. While we were still learning the ins and outs of that system, we were hit with serious changes to lending and closing procedures (commonly known as TRID) in October. Everyone has moved quickly to adapt to these new changes, and the pace of real estate business seems to be getting back to normal.
2016 is poised to be a fantastic year for real estate. The minimal FED rate hike late last year shows there is rising confidence in the economy. Interest rates for loans in 2016 so far have seen no real increase and are still hovering around 4%. Foreclosures continue to fall and are no longer a dominant force in the marketplace. Many new or revised and relaxed lending options are opening up and/or coming back in fashion to help first time home buyers. New construction building permits are on the rise. But most of all, Millennials are entering the home buying market a lot stronger than expected. Initially dubbed the "renter" generation, Millennials now account for almost one third of all home sales. Generation X are now in their prime earning years with busy families and moving up into their long term "dream" homes. Baby Boomers are entering retirement and looking to downsize and simplify their lives. All of this leads to growing housing needs across the board for all generations and we fully expect 2016 to continue to build on the successes of the last three years.
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