The Local Market Guide | Bello Home Team
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🍊 New homes at Citrus Farms, the U.S. housing shortage, and builders race to catch up

🍊 New homes at Citrus Farms, the U.S. housing shortage, and builders race to catch up

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

Sean Bates
June 27, 2023

Happy Tuesday!

The housing inventory shortage we are facing is certainly creating challenges for home buyers right now.

However, the good news is that builders are working hard to meet the demand for homes in the Tampa area.

These are the key happenings in and around Pasco County that are shaping the real estate and economic landscape.

Enjoy!

—Sean

🍊 Real Estate at Cabot Citrus Farms

Cabot, a Canadian company, has launched sales for the first set of upscale homes at Cabot Citrus Farms, a 1,200-acre property in Florida.

This follows the acquisition and rebranding of the World Woods property, located on the border of Citrus and Hernando counties, just over a year ago.

Details: The development, dubbed Cabot Citrus Farms, will host various amenities, including:

two 18-hole golf courses
a par-3 course, a new clubhouse
practice facilities with a putting course and driving range
retail shops
restaurants
fitness and spa facilities
communal gathering points
a farmer’s market

Zoom in: Cabot has launched sales for 36 two- and four-bedroom homes under its "Cottages at Cabot Citrus Farms" scheme. These homes, which the company describes as "rooted in comfort and relaxed, easygoing living," are designed in homage to historic Floridian architectural styles.

There will be 130 homes in total at completion, with prices starting from $1.8 million.

Lifestyle: The Cottages are planned to offer a seamless indoor-outdoor living experience. The 2-bedroom cottages aim to provide an intimate and cozy atmosphere, accentuated by natural light, elegant interiors, and a connection with the surrounding green space.

On the other hand, the 4-bedroom cottages are designed to deliver a warm and spacious feel, complemented by raised scissor-truss ceilings and large windows, alongside exterior green space for activities.

What’s next: Earlier this year, Cabot introduced its "21" course, which is expected to open in December 2023, alongside Cabot Barrens and Cabot Oaks.

As part of the initial deal, Cabot also acquired and subsequently sold the Sugarmill Woods and Southern Woods properties in Homosassa to Tampa-based Links Golf LLC.

The bottom line: This new residential development by Cabot represents a significant investment in the revitalization of the World Woods property, turning it into a comprehensive, upscale living community with numerous amenities.

It is poised to offer residents a comfortable and relaxed lifestyle that blends seamlessly with the Floridian countryside. This development is set to transform the region, offering an impressive range of housing options that cater to different needs and lifestyles.

😱 Construction Crisis: U.S. Needs 4.3 Million More Homes

The US housing market is experiencing an affordability crisis, as the demand for housing units outpaces the supply, according to a report by Zillow.

The country currently has a deficit of 4.3 million homes, referred to as "missing homes," contributing to the increasing gap between households and available homes.

Details: Between 2015 and 2021, the US housing stock grew by around 6.3 million units, whereas the number of families increased by 7.9 million.

This resulted in a shortfall of 4.3 million homes for the growing number of people currently living in homes owned or rented by other families.

The lack of affordable housing options is particularly impacting those households with a family income of $35,000 or less, which make up nearly seven out of 10 of these "missing" households.

Wider context: The housing affordability crisis is affecting the entire nation and requires both national and local level policy interventions to increase the construction of new, affordable homes.

While providing more affordable rentals can act as a short-term solution, the focus should be on increasing the number of affordable homes for sale to enable these households to build wealth.

Expert opinion: "The U.S. housing market is like a high-stakes version of the game musical chairs. There are simply not enough homes for millions of people. Unless we address the shortage of smaller, more affordable, starter-type homes, we risk leaving families without a seat — and it will only get worse over time," said Orphe Divounguy, Senior Economist at Zillow.

In Provo UT there are 9.0 "doubled up" families per available unit compared to 1.6 in Tampa FL

The coastal housing markets scenario: The discrepancy between households and available homes is even more noticeable in expensive coastal housing markets such as Los Angeles, San Francisco, San Jose, San Diego, and Boston, as well as in places like Boise, ID.

Solutions proposed by housing experts: The housing experts propose several solutions, such as loosening restrictive zoning laws, speeding up building permits, increasing funds for affordable housing, eliminating parking requirements, and providing tax incentives to revitalize underused housing stock.

The findings from Zillow's polls suggest that the majority of adults support adding smaller home types to increase housing options in their own neighborhoods.

The bottom line: It's crucial for home buyers to exercise patience, broaden their search criteria, and leverage professional help. Home sellers can capitalize on the market conditions with strategic pricing and enhancements to their property.

As this housing crunch unfolds, ongoing developments will significantly shape the real estate landscape in the years to come.

🏎️ The Motor Enclave is Now Open

Say hello to Tampa's new hot spot for motor enthusiasts, The Motor Enclave.

With a $150 million price tag and sprawled across a whopping 200-acres, this is more than just a race track.

They've already revved up their engines with Motorsports Club Member track sessions if their Instagram feed is anything to go by.

Facility Features: Apart from the usual bells and whistles, we're talking about a mind-blowing 1.6-mile Tilke-designed Performance Circuit and a staggering 100 acres just for off-roading.

But wait, there's more! Beyond all those tire-burning tracks, there are over 300 private garages and a giant Corporate Event Center that's about the size of half a football field!

A closer look: All those off-road tracks are perfect for any caged vehicle, be it side-by-sides, rally cars, Jeeps, or Broncos. Just a heads up, ATVs are a no-go here. And that 1.6-mile track? It's the brainchild of Hermann Tilke, the German genius who's designed a good chunk of the world's Formula One tracks.

Saftey: They've got a bunch of cars that guests can take for a spin, but don't think this is some Fast and Furious sequel. The Motor Enclave isn't about racing—it's about safety and having a good time.

They told the Tampa Bay Times, "It’s an enthusiast circuit. You can come out here and drive safely instead of cruising on I-75 in your McLaren." So, before you put the pedal to the metal, they'll check if you're ready to ride. Need a lesson or two? No worries, they've got you covered.

Bottom line: The Motor Enclave is shaking things up in Tampa's motorsports scene. It's offering a whole lot of fun for motor enthusiasts and taking safety seriously. So, buckle up and enjoy the ride!

🍎 Why I Ranked The Connerton Community a B+ and Not an A

Do you want to know everything there is to know about Connerton Community Living? I'm diving into all the details you need to consider before touring homes and moving to the Connerton Community.

🧱 New construction homes are on the rise

What’s happening: After a shaky few months, the homebuilding scene is getting its steam back as folks get used to the new pricing norms in the tight market.

Thanks to a surge in mortgage rates last year, buyer demand has been low, but now that builders are back on the grind and they're feeling good about it.

What's changed? According to Uncle Sam's official stats, privately-owned housing starts in May were at an annual rate of 1.63 million, a neat 21.7% increase from April.

Also, building permits for privately-owned houses were up 5.2% from April, although they're 12.7% less than in May of last year.

What they’re saying: Kelly Mangold from RCLCO Real Estate Consulting puts it this way, "There's such a low level of inventory on the market, so many people are locked into very low-interest rates, which makes new homes one of the more available options in a lot of markets."

Home builder action: Major homebuilders like Miami's Lennar Corp. are expecting to roll up their sleeves and build more homes than they thought they would this year.

The company's top dog, Stuart Miller, pointed out the continuing housing supply shortage and said that construction costs and supply-chain issues have cooled down since the peak of the Covid-19 pandemic.

The mood is upbeat: A monthly check-in with the homebuilding industry showed an optimistic result. The NAHB/Wells Fargo Housing Market Index, which gauges current single-family home sales, future sales, and buyer traffic, found improvement on all fronts in June 2023.

George Ratiu, the head number cruncher at Keeping Current Matters, tells us, "Instead of buyers running away, they started to try to walk forward and figure out how to make deals happen." He added that mortgage rates are less volatile now, bobbing between 6% and 7%, which gives buyers more confidence about what they can afford.

More good news: Builders are stoked that buyer demand hasn't vanished despite the big leaps in mortgage rates. The existing inventory of homes for sale is still super tight, and in some places, we're seeing multiple offers on certain existing homes.

According to Nicole Bachaud, a senior economist at Zillow, the low inventory of existing homes for sale has nudged many buyers who can afford to shop for homes to check out new constructions.

As a result, new single-family home sales in April saw a 4.1% increase from March and an 11.8% bump compared to April 2022. This growth has helped boost builder confidence from the lows seen in the past year.

Industry shifts: As builders check out their present and future projects, they're shifting away from the high-end segment to more affordable options. But first-time buyers might still find it tough to spot entry-level-priced new construction.

The bottom line: After some rough patches, homebuilding is getting its groove back. While prices and mortgage rates might still be a hurdle for first-time buyers, the overall vibe in the industry is one of optimism.

However, the possible impact of Canadian wildfires on lumber prices is something to watch out for.

📊 Our Current Local Market Data:

According to the most recent market update from Redfin, the number of homes available for sale has decreased by 39% compared to June 2018.

Here are the other findings from the report:

Active listings of homes for sale have decreased by 6% compared to the previous year.
New listings of homes have decreased by 23% compared to the previous year.
Pending sales have decreased by 27% compared to the previous year.
The median asking price has increased by 0.3% compared to the previous year.
Approximately 36% of homes have been sold above their final list price.
Touring activity has increased by 20% since the beginning of the year.

Our analysis: It is evident that there is a significant shortage of available homes at present, with a decrease of 39%.

This situation is unlikely to change in the near future.

However, the demand from buyers remains high. To succeed in this market, you’ll often need stronger offers. Or you’ll have to explore homes that may be less competitive.

Either way, we’re staying on top of the market daily and there are even financing options that help you purchase at a lower rate. So if you ever have questions, don’t hesitate to ask.