Todd Lubar, a realtor in Potomac, Maryland has recently opened up about his thoughts on the future of this local housing market. Anyone looking for a new house can expect to see the following five trends in the housing market this year:
- The Use of Drones
The Federal Aviation Administration began to allow the real estate industry to use unmanned aerial vehicles or drones this year, and realtors are expected to take full advantage of it. Drone manufacturer Steve McIrwin stated that drones are excellent tools for those who have properties with several acres or something unique to present to the customer. The FAA’s decision means that operators don’t need licenses to fly drones, but they will need to have a flight plan and permission to fly.
Home sellers aren’t going to be the only ones to benefit from drones. Home buyers can also use the technology to inspect prospective houses. Those who cannot schedule a personal inspection will be able to send a drone to do it for them.
- Suburban Neighborhoods
Suburban neighborhoods are beginning to bring in the amenities that can only be found in urban areas. In these locations, people will find the typical types of housing, including town houses, apartment houses and single family homes. But in these new neighborhoods, they will be able to walk to work and their children’s activities. Also, the homes are so affordable that teachers, janitors, police officers and firefighters can all afford to live there.
- Move-Up Properties
The National Association of Realtors has stated that millennials are going to start purchasing homes this year. These people have had an opportunity to save their money, and they are choosing not to buy starter-homes and condominiums. The markets are in a good place right now, and millennials have paid down their student debts and saved a considerable amount of money. They can now purchase more than a start-up home, but this will depend on how student loan debts are handled in the future.
- The Election of Donald Trump
With the election of Donald Trump, interest rates could be expected to rise. If people aren’t confident that the stock market will continue to go up and believe that President Trump will decrease government spending, people will be afraid that a recession is on the way. In that case, interest rates will remain low.
Some experts aren’t expecting interest rates to be touched because the reasons that interest rates were lowered still exist at this time. They do believe that Donald Trump’s presidency will be good for the housing market because the financial services industry will, most likely, have regulatory relief and regulatory certainty. If this happens, average home buyers will be able to begin borrowing again, and this means that more people will be able to purchase homes.
- Generation Z Is Coming
The oldest of those who are identified as “generation Z” are turning 18 years old. The news looks good for this cohort because interest rates are low, jobs are plentiful and salaries are high. It appears that this generation is in favor of home ownership because 97 percent of those polled have expressed the desire to own a home.
About Todd Lubar
Todd Lubar got his start in the real estate industry as a loan originator. While he was with Crestar Mortgage Corporation, he learned all about conservative mortgage banking while he was nurturing relationships with various members of the real estate community, including real estate agents, insurance agents, financial planners and CPAs. This experience has served him well throughout his career.
In 2002, Todd Lubar opened Legendary Properties, LLC. Because he was well-known in the real estate industry, he only needed a short time to begin purchasing, rehabilitating and selling single family homes and multi-family properties. Legendary Financial, LLC grew out of Legendary Properties, LLC, and it is a company that provides funds for private individuals as well as business owners.