The Local Market Guide | Bello Home Team
Posts
📈 New Interest Rate Policies, Renting vs Buying, and a Farm at Angeline

📈 New Interest Rate Policies, Renting vs Buying, and a Farm at Angeline

These are a few major things happening in Pasco County and in the Tampa area you might want to know about.

Sean Bates
May 16, 2023

Happy Wednesday! Tampa’s economy is booming and I’ve got the latest news that pertains to Pasco & Tampa Bay home values.

— Sean

📈 The Feds have rolled out a new mortgage fee structure

Why it matters: Mortgage lenders usually pass on these fees to borrowers via higher interest rates on loans. Consequently, some buyers might save thousands of dollars, while others could end up paying more due to the fee changes.

The Federal Housing Finance Agency (FHFA) has introduced a new fee structure for mortgage loans. Experts suggest this move aims to stimulate home buying among lower-income Americans. However, the change could also mean higher costs for some borrowers.

What's happening: Upfront fees for loans backed by Fannie Mae and Freddie Mac will be adjusted because of changes in the Loan Level Price Adjustment (LLPA) fees.

These charges typically range from 0.25% to 3% of the loan, factoring in risk elements such as credit scores, property type, and loan-to-value ratio.

As of May 1, these fees have been adjusted, reducing costs for borrowers with lower credit scores and increasing costs for those with higher scores.

Between the lines: While lower fees could lead to reduced borrowing costs for those with lower credit scores, a shortage of affordable housing remains a significant hurdle.

Increased costs for those with higher credit scores could potentially affect the construction industry, as pricier large loans could lead to reduced activity from homebuilders.

By the numbers: Andrew Hall, founder and fund manager at PaperClip Asset Management, estimates savings could reach 2% for those with lower credit scores.

Conversely, individuals with higher credit scores could end up paying up to 0.75% more.

The big picture: This new fee structure is among recent changes aimed at modifying homeownership.

For instance, a March rule change by the Department of Housing and Urban Development now allows homeowners to modify their mortgage to a 40-year term to reduce their payments.

Bottom line: It’s important to note that individuals with excellent credit scores will still have lower fees compared to those with lower credit scores. They are simply going to be paying more than the previous fee structure dictated while those with lower scores will have a smaller penalty.

The impact of these changes remains uncertain, with experts divided on their potential effectiveness.

💸 Study shows it’s cheaper to buy than rent in the Tampa Bay area

Despite nationwide rising mortgage rates, a recent report by financial technology firm SmartAsset suggests it's still cheaper to buy than rent in several Tampa Bay cities.

Driving the news: Amid constant year-over-year price hikes in Tampa Bay's housing market, SmartAsset's report offers a silver lining for prospective homeowners. The company analyzed almost 600 U.S. cities and their average mortgage and rent payments, based on a survey from the U.S. Bureau of Labor Statistics.

By the numbers: Florida cities heavily populate the top ten list where buying trumps renting in cost-effectiveness. North Port, for instance, showcases a negligible difference of $2 between the average mortgage and rent payments, ranking it among the top 20 cities. Meanwhile, in Lakeland, renting exceeds the cost of a mortgage by $77, as per the report.

Zoom in: To gauge the net difference in mortgage and rent costs, the study compared mortgage data from the 2021 American Community Survey's "Financial Characteristics of Housing Units With a Mortgage" and rent data from the same survey's "Selected Housing Characteristics".

The big picture: The study revealed that in over 70 cities, mortgage payments are at least $1,000 costlier than the average rent. In St. Petersburg and Tampa, renting emerged as a much more affordable option than owning a home, with dollar differentials of $328 and $423, respectively.

It's crucial to note that SmartAsset’s analysis did not account for additional homeownership costs such as agent fees, real estate transfer taxes, or maintenance and repair costs, which are typically covered by landlords or rental companies for renters.

Reality check: While the report offers some guidance for those deliberating between renting and buying in Tampa Bay, it doesn't present the full picture of homeownership costs. Potential buyers should consider all financial implications, including those not factored in this study, before making a decision.

The bottom line: As the Federal Reserve continues to hike interest rates, and the housing market reacts accordingly, individuals will have to reassess the rent vs. buy equation based on their financial situation and the ever-changing economic landscape.

🍅 Angeline in Pasco County to Host Tampa Bay's First Residential Farm

Metro Development Group has announced the introduction of the first residential farm amenity in the Tampa Bay area at Angeline, their latest community in Pasco County. The 2.5-acre working farm, managed by agricultural consulting firm Agmenity, will offer fresh produce and a community experience for residents while also serving as an educational hub for the wider community.

Driving the news: The farm, positioned next to the Angeline Farmhouse welcome center and café, will employ sustainable farming practices to cultivate an array of vegetables, fruits, herbs, and flowers, with crop variations aligned with the seasons. Additionally, a flock of 15 to 20 laying hens will contribute up to 40 dozen eggs a month.

Why it matters: This innovative move places Tampa Bay at the forefront of the agricultural urbanism trend, which has gained traction over the past two decades as developers increasingly emphasize sustainable planning practices.

“Angeline is being planned and built around a healthy lifestyle,” said Kartik Goyani, Vice President of Operations for Metro Development Group. “We are the first in the Tampa Bay area to bring this kind of amenity to a community, and it’s an important part of our goal to support our residents’ health and well-being.”

Zoom in: The farm will offer more than just fresh produce. It's designed to be a community hub, with opportunities for residents and visitors to learn about quality food production through educational programs, events, and volunteering. Metro aims to connect the community, from students at the nearby Angeline Academy of Innovation to Angeline residents.

What's next: Planting at Angeline Farm is set to begin this summer, with the first harvest expected in the fall. As the farm grows, more programming and benefits for residents will be introduced.

The big picture: Angeline is a master-plan community situated off the Suncoast Parkway in central Pasco County, neighboring Moffitt Cancer Center’s Speros, a state-of-the-art global innovation district. Spanning 6,200 acres, Angeline will accommodate more than 30,000 residents and offer 3,600 acres of green space, a vast trail network, commercial spaces, and the fastest internet service in the nation.

The residential community is currently underway, with homes and townhomes for sale, and more single-family homes will become available in the coming years.

⭐️ Three Tampa Bay Restaurants Awarded Michelin Stars

In a landmark achievement, three Tampa restaurants - Rocca, Lilac, and Koya - have received their first Michelin stars, marking Tampa's debut in the prestigious Michelin Guide.

Why it matters: The inclusion of Tampa restaurants in the Michelin Guide signifies the growing recognition of Tampa's culinary scene on the global stage. This could boost local tourism and further enhance the city's gastronomic reputation.

The big picture: Michelin stars are considered one of the highest honors in the culinary world. While no Florida restaurant received the top rating of three stars this year, the recognition of four restaurants, including one in Miami Beach, with one-star ratings marks a significant step forward.

Details: The Michelin Guide began including restaurants in Hillsborough County, Orlando, and Miami only in 2022 after Visit Florida and tourism agencies in Tampa, Miami, and Orlando agreed to a three-year, $1.5 million deal to feature in the Guide.

Going deeper: Besides the star-awarded restaurants, two Tampa establishments - Psomi, a Greek restaurant, and Gorkhali Kitchen, a Nepalese restaurant - received Bib Gourmand recognition. In total, 33 restaurants across Tampa, Orlando, and Miami earned Bib Gourmand recognition.

Eighteen Tampa restaurants will be listed as recommended in the Michelin Guide.

What's next: Tampa's culinary scene is likely to continue its growth and evolution, drawing food enthusiasts from across the globe. Meanwhile, the local restaurants recognized by the Michelin Guide will strive to maintain, and possibly elevate, their esteemed status.

📊 Our Local Markets:

In some micro-markets here in Pasco, Hillsborough & Pinellas, multiple offers are back… inventory is tight, and buyers are returning for the summer.

The heating up market will be interesting to see now that we know rates won’t increase anymore, so by the end of this year, they should start declining again.