Tampa’s continues to add new developments that will bring more money into our local economy

Here’s a few of the headlines that are impacting our local economy in and around Pasco & Tampa Bay.

— Sean

📉 Not All Recessions Are Created Equal: A Look at Unique Factors Driving Today's Economic Landscape

Driving the news: The current recession looks different than what we are used to seeing in the economic cycle.

Why it matters: Understanding the nuances of each recession can help businesses and individuals better prepare for potential economic slowdowns and identify industries more likely to weather the storm.

Different recession triggers: In 2020, a sharp recession occurred due to a deadly virus and enforced lockdowns. Unprecedented stimulus packages helped revive the economy, with certain industries benefitting from the specific circumstances. Now, the combination of pandemic aftermath, the war in Ukraine, and rising interest rates creates a new recession threat with potentially different outcomes.

By the numbers: In 2020, US GDP growth plunged by 4.6% in Q1 and 29.9% in Q2. However, a 35.3% growth in Q3 was fueled by a $2.2 trillion stimulus package. In total, over $3 trillion in stimulus was passed by the end of 2020.

Recession-resilient industries: Historically, industries supplying essential goods and services, such as utilities, healthcare, consumer staples, and technology, have fared better during recessions.

Housing, another essential, typically sees declining prices only when demand slows and interest rates rise. That’s why in the last 6 recessions, home prices have only fell twice, once was only 1-2% and the other was led by the mortgage crisis.

Zoom in: The current housing market, however, faces shortages in affordable entry-level options. As Millennials, many benefiting from generational wealth transfers, enter the market alongside entities seeking elevated returns from rising rents, the impact on housing prices remains uncertain.

Reality check: With significant rental property construction underway, the market may experience a shift in rental prices when new properties become available.

Bottom line: This potential recession will likely be different from previous ones due to its unique set of driving factors. While predicting the exact outcomes is challenging, being aware of these differences can help individuals and businesses prepare and adapt. The one thing we can tell based on all the data is that real estate is set up way stronger this time.

🧱 Home Remodeling Projects with Best ROI Focus on Curb Appeal

A recent report by Zonda Media reveals that, contrary to popular belief, the home renovation projects with the highest return on investment (ROI) focus on enhancing curb appeal rather than undertaking more glamorous kitchen and bath remodels. Homeowners generally receive a 60% return on investment for their renovation projects.

By the numbers: 95% of homeowners plan to take on a major home improvement project in the next five years, but only 50% can currently afford it. The average homeowner spent $3,890 on renovations and remodeling in the past year alone.

A few projects that can deliver a 100% ROI include converting a heating, ventilation, and air conditioning system to electric, replacing garage doors, installing a stone veneer, and upgrading to a steel front door.

Minor kitchen remodels, such as painting and updating the backsplash, may provide high returns, but major kitchen and bathroom remodels tend not to, according to the Zonda survey.

Advice for Homeowners:

• Talk to a local realtor and a financial planner about which renovations could increase your home's value and which ones to skip.

• Obtain competitive bids on any project and include a 10% buffer for potential extra expenses.

• If financing a project, look into a home equity loan or home equity line of credit and ensure you can work the monthly payments into your budget.

• Consider holding off on large renovations to save money, pay down debt, and wait for potentially lower interest rates.

Takeaway: With high home prices and tight housing supply, many homeowners are opting to fix up their current homes rather than look for something new. However, homeowners should consult with local realtors and financial planners to determine which renovation projects will provide the best ROI and improve their quality of living, especially as the cost of construction and financing rises.

🏙️ Tampa's Tallest Residential Tower: New Renderings Unveiled

What's happening: New renderings have been released for One Tampa, set to become the city's tallest residential tower.

The 42-story luxury condominium will feature 225 units, 5,000 sq.ft of restaurant space, and prime amenities, directly across from the Riverwalk.

Details:

• Floor plans range from 1,200 to 2,700 sq.ft, with 1, 2, and 3 bedroom layouts, plus dens.

• Amenities include a theater room, social club, expansive gym, simulator game room, rooftop pool, and lounge space.

• The 12th floor offers work-from-home spaces, guest suites, private training, and a yoga studio.

Developers and designers: South Florida-based Kolter Group is developing One Tampa, while Ft. Lauderdale-based Adache Group Architects and ID & Design International handle interior and exterior design.

By the numbers: Pre-sales for the condominiums launched in January, with prices starting in the $800,000s.

Go deeper: Potential buyers can visit the newly updated website to explore renderings and floor plans, as well as visit the sales gallery now open for viewing.

📊 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.

If you’re curious how much your home could sell for now, then reply “what’s my home value” or you can get an estimated value here.

Or if you’re just curious about how the current market affects your situation & what’s going on in your specific neighborhood, just reply & ask.

📰 In Other News:

• World famous Spartan Race comes to Tampa Bay

• New Treatment for Traumatic Brain Injuries: Hyperbaric Oxygen Chambers are now being used to treat TBI in Tampa Bay

• AQUA luxury towers rising soon along the Tampa waterfront

• Blush, a shipping container champagne bar, open in Wesley Chapel

That’s all for today, I hope you have an amazing week!

If there’s ever anything you need:

• a custom market or home value report

• a home services list for a reliable contractor or services professional

• feedback or a professional opinion on a home project

Just let me know! We’re here to help with all your home needs.

Talk soon,

- Sean, the Bello Home Team 

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