Todd Lubar, president of TDL Global Ventures and veteran executive at Legacy Financial Group, Charter Funding, and Crestar Mortgage Corporation, released his projections for the 2018 housing market this week. With over twenty years worth of experience in mortgage origination and real estate experience, Lubar is ideally suited to provide expertise and analysis on real estate trends. A graduate of Syracuse University, he is currently focused on reducing the heroin epidemic in his Baltimore community and making housing more affordable to his clients.
Todd Lubar is convinced that the average price of homes is slated to increase in 2018 — but don’t rush to buy that new house just yet. “Current trends indicate that the market is going to climb, but it’s not going to climb at a rapid pace,” Lubar said. “Towards the end of the year, homebuyers are going to not only have a broader array of homes from which to choose, they’ll also have an increase in available equity.”
Presenting an advantage for first time home buyers, the appreciation rate is expected to drop after years of consistent growth. While the average price of homes increased by just over 6% in 2016 and 2017, the expected increase at this moment for 2018 is at 4.1%. Several factors are causing this obtuse growth pattern. Todd Lubar indicated that these are home construction, the amount of homes for sale, and others. Construction of single family housing units is expected to rise over 8% this year, demonstrating a promising growth pattern for one of the nation’s most desired home layouts. These homes are also those that are most likely to be purchased by first time home buyers, Lubar indicated.
While home buyers are looking for deals, they can’t always depend on a good deal to find them a decent house. Todd Lubar has seen countless cases where home owners who bought a house sight unseen end up having to gut the property to get it to there specifications, hence the widely expected rise in building permit applications. Interestingly, home sales are expected to rise by a few percentage points in 2018, and those markets include Tulsa, Little Rock, and Dallas according to Todd Lubar. He indicated that those communities and the surrounding regions are less likely to be burdened by building regulations, a factor which could stymie growth.
Lubar also pointed out a few tips surrounding the mortgage industry, a field in which he has a particularly competitive edge. Rates are going to be on the rise, with the 30-year fixed rate expected to float at around 4.7%. These rates are the highest that they have been since 2011, and Todd Lubar is under the impression that the age of bargain mortgage rates is long gone. This is after a year which saw a 30-year fixed rate levitate at around 4.07%.
Since the average price of homes as well as those of mortgage rates are slated to increase throughout 2018, homes will inevitably become less affordable. While Lubar indicates that mortgage rates are going to rise, he did say that middle class families throughout the majority of the country will have a bit of financial flexibility due to several factors such as wage increases and other liquidity options.
Unfortunately, Todd Lubar has heard many stories of clients having down payments being stolen by email hackers. This is a scary trend that is not stopping any time soon. The FBI’s Internet Crime Complaint Center, the Department of Justice’s lead agency on wire fraud, has said that this specific type of crime targeting home buyers has increased at a rate of over 400% in 2016. Lubar pointed out that the greatest defence against this type of cybercrime is to simply call your real estate agent and confirm their request for the wire transfer, thus eliminating the risk of transferring money to a fraudster’s account.
In other news pertaining to 2018 housing trends, an increase in credit for people with poor to satisfactory credit history is expected to occur. If anyone knows anything about offering credit to people with questionable financial histories, it’s Todd Lubar. For example, in a profile of Lubar published last year on Medium, he was described as “someone whose professional niche was underserved clients.” Due to this experience and his care for the community, Lubar created Legendary Financial and Legendary Properties to expand financial and real estate services to more working families. Indicative of his character, Lubar used his own money as a lending source and ultimately settled over 7,000 transactions.
Lubar has seen a drastic increase in banks offering mortgages that are interest-only. While there may be concerns about individuals that have questionable credit acquiring loans that require merely a modicum of paperwork, Lubar feels that with the right financial advisor and proper training, working families will be able to economically thrive and successfully purchase a new home. “It’s the American dream — owning a home, perhaps having a white picket fence, maybe a dog and kids in the backyard. It should be afforded to the many — not the few.” And in 2018, with these trends that Lubar has noticed, more families stand a greater chance of achieving that dream.