Happy Thursday!

Tampa and Pasco are still booming as we start to wrap up 2024.

The Arts Museum is moving forward with growth and Pasco County is leading EV use.

We are also taking a look at the recent interest rate cuts and talking about what that means for the housing market.

Have a wonderful Christmas and travel safely if you are out visiting loved ones next week!

—Sean

🎨 Tampa Museum of Art Secures Additional $10M for Riverfront Growth

Driving the news: The Tampa Museum of Art is set to receive a significant boost in its riverfront expansion efforts, with the Tampa City Council approving an additional $10 million in public funding.

This decision brings the total contribution from the Downtown Community Redevelopment Agency (CRA) to $24.75 million over ten years.

Details: The CRA, a state-designated area for urban renewal, redirects new or incremental tax revenue within its boundaries toward development projects.

The museum's expansion, initially estimated at $80 million, has now escalated to $110 million due to rising labor and material costs.

In 2021, the CRA had already pledged $14.75 million over five years for this project.

Why it matters: The additional funding will specifically support public elements of the expansion, such as outdoor sculpture plazas and enhanced accessibility between Poe Parking Garage and Gasparilla Plaza.

This aims to improve connectivity with Curtis Hixon Park and foster greater public engagement with the museum.

The big picture: The museum's expansion is seen as a significant investment in the city's cultural infrastructure, contributing to the urban landscape and local economy.

What’s next: The project will proceed with the new funding, focusing on enhancing public spaces and accessibility.

This move signals a strong commitment to cultural development in Tampa but also raises questions about balancing such investments with other civic priorities.

The bottom line: The Tampa Museum of Art's expansion reflects a growing trend in cities investing in cultural landmarks as a means of urban renewal and economic development.

While there is broad support for such initiatives, they often stir debates about resource allocation and municipal priorities in the face of diverse urban challenges.

⚡️ Pasco County Leads Tampa Bay in Electric Vehicle Usage

Driving the news: Pasco County leads Tampa Bay in electric vehicle (EV) usage, with an estimated 352 EV miles driven per 1,000 residents on a typical weekday in Q2 of 2023.

This ranks highest in the region, surpassing both Manatee and Sarasota counties.

Details: The data, sourced from the mobility analytics platform Replica, reflects the growing trend of EV use in the United States.

Notably, Manatee and Sarasota counties follow Pasco in regional EV miles, emphasizing the increasing adoption of electric vehicles in the Tampa Bay area.

In Florida, Pasco and Manatee are 7th and 8th respectively for EV use. Sarasota ranks 11th with 312 EV miles, while Hillsborough is 12th. Pinellas, Polk, Hernando, and Citrus are lower in the state ranking, with Pinellas at 24th.

Why it matters: This surge in EV usage in Pasco and neighboring counties indicates a shift towards more sustainable transportation options.

The big picture: Nationwide, EV usage is concentrated in regions with advanced charging infrastructure and higher-income demographics.

This pattern is evident in California, the Pacific Northwest, the Northeast, and the Southeast, according to reports by Alex Fitzpatrick and Kavya Beheraj.

Between the lines: Despite the boom in electric car sales, challenges like range anxiety, performance concerns, and cost remain barriers to widespread adoption.

Major automakers are adjusting their strategies in response to these market realities.

What’s next: As EV prices drop, especially in the used car market, accessibility to electric vehicles is likely to increase.

This shift could democratize EV ownership, making it more feasible for a broader demographic.

The bottom line: The "electric car revolution" in areas like Tampa Bay is a microcosm of a larger, global trend.

However, its uneven distribution across different regions and socio-economic groups underscores the need for more inclusive and widespread EV adoption strategies.

🏠 Mortgage rates have dropped below 7%

Driving the news: In a significant development for the housing market, mortgage rates have dipped below 7% for the first time since mid-August.

This marks the seventh consecutive week of declining rates, influenced by improving inflation figures and the Federal Reserve's pause in rate hikes.

Details: The 30-year fixed-rate mortgage averaged 6.95% in the week ending December 14, a slight decrease from the previous week's 7.03%, as reported by Freddie Mac.

This is a noteworthy shift from the 6.31% rate observed a year ago.

These figures are based on data collected from numerous lenders and reflect mortgages with a 20% down payment and excellent credit.

Mortgage applications have risen for six weeks straight, indicating growing borrower demand in response to the falling rates.

This trend is particularly significant for first-time buyers, who have struggled with affordability and low housing inventory.

Why it matters: This decline is critical for potential homebuyers who have been grappling with high rates and an unaffordable housing market.

Freddie Mac’s chief economist, Sam Khater, anticipates a gradual revival of the housing market in the coming year, particularly if inflation continues to slow and the Fed cuts rates as expected in 2024.

The big picture: The rates peaked at 7.79% in late October, making the current decline a sign of potential relief for prospective buyers.

The housing market, which has been experiencing its least affordable period since the 1980s, could see increased activity as rates continue to fall.

Between the lines: Despite the dip in rates, challenges remain due to the persistently low housing inventory.

Current mortgage holders, the majority of whom have rates below 6%, are hesitant to sell, leading to sustained low inventory and elevated prices.

What’s next: The Federal Reserve's recent decision to pause rate increases and the possibility of rate cuts in 2024 are pivotal factors influencing mortgage rates.

These actions, coupled with economic indicators like job growth and inflation rates, will continue to shape the housing market dynamics in the upcoming year.

The bottom line: While the drop in mortgage rates is a welcome development for potential buyers, the market faces ongoing challenges due to low inventory and the 'lock-in effect' of existing homeowners with low mortgage rates.

The upcoming year will likely see a continued focus on affordability and inventory levels as key drivers of the housing market.

📊 Our Current Local Market Data: 

Both the Tampa and Pasco County real estate markets are showing signs of cooling off and normalizing after a period of rapid price appreciation.

Homes are spending slightly longer on the market than they were last year.

Outlook:

• Both the Tampa and Pasco County real estate markets are expected to remain strong in the near term.

• However, the rate of price appreciation is likely to slow.

• Homes are expected to spend more time on the market.

• Inventory levels are expected to continue to increase.

I am happy to help you create a real estate strategy that will allow you to navigate the current market.

If you ever have questions, don’t hesitate to ask.

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:

• The Tampa New Year’s Eve Events Guide
  

• Enchant Christmas brings the “world’s largest” holiday lights display to Tropicana Field
  

• Massive indoor pickleball facility opening in Ybor City in 2024

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, and the Bello Home Team 

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