Ever since the housing market crashed and the economy went into a tailspin in 2008, the real estate market has been something a lot of investors are afraid to get involved with. In fact, as real estate moguls like Todd Lubar have seen, a lot of established investors and developers in the real estate market — after they lost a good deal of their assets — left the industry altogether. While it is true that the economy has been slow to stabilize, and with it the real estate market resurgence being slow as well, the market is starting to see a resurgence.
Todd Lubar has a long history of successful real estate investment and development. He got involved in the real estate industry in 1995 and has been a highly successful and influential figure in the field since. His expertise is in the financial side of the real estate market and he began his career as a loan originator. While not ultimately where his career would focus, the experience this gave Lubar allowed his to gain invaluable knowledge, as well as cultivate relationships that would prove high important at various points in his career.
He and his colleagues understand that while the industry is not booming as it once did in its heyday, it is seeing a great deal of improvement that a lot of people might not have expected. For those who have stayed in the market, 2018 looks to be a much better year than, perhaps, many industry experts might have expected.
2017 was a year of a lot of change and 2018 is likely to be much the same, and there are some trends that could have negative impacts on the market. One factor that Todd Lubar and others in his field have to keep an eye on is the expected continued rise in the cost of homes in pretty much all major markets in the country. What this means is that homes become less affordable for the overall population, which could reduce access to mortgages and thus reduce the number of homes sold during the course of the year.
While the prices of homes is expected to rise, Lubar and his associates note that the rise is not likely to be nearly has high as originally expected. And on the flipside, for home owners, this will be a positive effect as it will make their home a more valuable asset and this will give them more equity, which is highly useful if you wish to start a business, invest in real estate, or make some other type of large purchase or investment.
Experts in the field also expect there to be a rise in the number of homes on the market in 2018. This will, in some way, saturate the market which could help to slow down the rise in residential real estate prices. It will also mean a lot more choice for the consumer as there will be far more options for potential buyers to choose from. This is an interesting trend as there are also more Baby Boomers that are reaching retirement age and choosing to stay in their homes, rather than downsize which is a commonly seen strategy.
Lubar and his colleagues will also have to keep a keen eye on mortgage rates in 2018. Many experts, as well as financial analysis firms expect there to be a rise in interest rates over the course of the year, which could have a cooling effect for first time home purchases. While many expect to see an increase, it is expected to be a fairly modest increase, though it truly does seem to signal that the era where people with few assets or collateral can qualify for an affordable mortgage.
It is also expected that the growing trend towards automation is going to continue to grow in importance over the coming year. A lot of larger real estate finance related firms are looking towards building their own automation software, whereas others are looking to third party software developers to stay on the cutting edge of the machine learning, artificial intelligence, and smart automation trends we see continuing to grow in popularity.
Recent legislative changes are also likely to have an impact on the real estate market through this year and beyond. Recently, the Congress passed a sweeping tax reform bill that can have a big impact on buyers and sellers. The capital gains exclusion has been preserved, but there have been changes how interest paid on a mortgage can be dedicated.
The new law will become effective next year and it will reduce the deduction you can take for state and local income taxes, as well as property taxes. Additionally, the new rules reduce the amount that you can claim from $1,000,000 to $750,000. These changes, while they don’t go into effect until next year can have an impact on the future buying and selling habits of potential and existing homeowners.
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