Happy Wednesday!

There are so many exciting things happening in Tampa and Pasco’s economy this week.

Home values are increasing while new regulations are making lot sizes bigger in Pasco.

Keep reading to see what's happening and to check out the top five misconceptions that homeowners have about buying a house.

—Sean

💸 5% of Tampa Bay homes are now worth at least $1 million

Driving the news: A recent report by real estate website Redfin shows that the share of homes in the United States worth $1 million or more is nearing an all-time high.

Tampa is among the cities where home values have increased recently.

Details: The report found that 8.1% of homes nationwide are now worth $1 million or more- this has doubled from just 4.2% in 2019.

The increase is being driven by a number of factors, including low interest rates, strong demand, and limited supply.

By the numbers:

• The share of million-dollar homes in Tampa Bay is 5.2%.
  

• The wealthiest ZIP codes in Tampa Bay are scattered across the area, with median household incomes of $100,000 or more.
  

• The average monthly mortgage payment on a $1 million home is $6,604, up from $5,984 a year ago.

Why it matters: The increase in the number of million-dollar homes shows how quickly property values have appreciated in Tampa in the past several years.

It's a good reminder that the best time to buy real estate is as soon as possible- so that you can enjoy long-term gains.

Between the lines: The increase in the number of million-dollar homes is a sign of the growing housing crisis in the United States. There simply are not enough homes to go around, so demand and interest rates are keeping prices high.

What’s next: The trend of rising home prices is likely to continue in the near future. This could make it even more difficult for first-time buyers to afford to buy a home.

The bottom line: The increase in the number of million-dollar homes is a sign of appreciating home values in Tampa and the low amount of inventory available on the market.

 📐 Pasco County Commission Sets New Residential Lot Sizes

Driving the news: The Pasco County Commission has voted to establish a new minimum standard for residential lot sizes in the area.

Details: The new policy will require that residential lots be at least 45 feet wide, except in specific instances such as traditional neighborhood developments (TNDs), transit-oriented developments (TODs), or 55-plus communities.

Why it matters: The new minimum lot size requirements are a major victory for residents who have been concerned about the quality of development in the county.

The narrower lots that were previously allowed 40-foot lots led to a proliferation of cookie-cutter homes and a lack of green space.

The new requirements are expected to result in more attractive and livable neighborhoods.

The big picture: The decision by the Pasco County Commission is part of a larger trend of communities across the country taking steps to improve the quality of developing areas.

As people become more concerned about the environment and the need for walkable communities, local governments are increasingly adopting zoning and planning regulations that promote these goals.

Between the lines: Traditional neighborhood developments (TNDs) and transit-oriented developments (TODs) are exempt from the minimum lot size requirement. This is because these types of developments are typically designed to be more pedestrian-friendly and have a higher density of housing.

What’s next: The Pasco County Commission is expected to begin reviewing applications for new developments that meet the new minimum lot size requirements in the coming months.

The commission will also need to adopt additional regulations to ensure that the new requirements are implemented effectively.

The bottom line: The new requirements are expected to result in more attractive and livable neighborhoods as Pasco continues to see population growth.

✋ 5 Misconceptions Americans Have About Buying Homes

Driving the news: Many Americans have limited knowledge of the real estate market- particularly in areas like property prices, mortgage interest rates, and the overall process of purchasing homes.

Research spearheaded by Real Estate Witch highlighted some of the common misconceptions Americans have about buying homes.

Misconception #1: Underestimating The Median Home Sale Price

60% of potential homeowners underestimate the median home price. Most peg it between $200,000 and $399,999, while the real median price in the U.S. is a staggering $436,800.

Only 14% of the surveyed participants knew the correct range was between $400,000 and $499,999.

Misconception #2: Interest Rates

Only about 12% of the U.S. knows that the current interest rate for a 30-year mortgage is between 6% and 7% (Note that since the survey was taken interest rates have risen above 7%).

Around 8% of non-homeowners knew the correct interest rate range compared to 15% of homeowners who knew the correct range.

What's worse is that a lot of the survey participants overestimated the current rates. About 43% believed the rates were higher than they actually were.

Misconception #3: Down Payments

Most people don't know that a 20% down payment isn't the standard for loans anymore. Many buyers purchase homes by putting down 3%-5%.

However, 56% of people who own homes and 72% who don't still thought that a 20% down payment was needed.

Misconception #4: Real Estate Commissions

Many buyers might be factoring in an expense they don't have to pay for: commission for realtors.

It's usually the seller's responsibility to cover commission expenses for both the buying and listing agents.

However, 62% of Americans believe that buyers have to cover these expenses.

Misconception #5: The Home-Buying Process

30% of homeowners find closing cost expenses to be the most unexpected cost of buying a home.

About 17% said that the number of offers they had to make before one was accepted was another surprising part of the home-buying process.

These are a few other stats about unexpected parts of the process:

The bottom line: It's important not to let national headlines inform your opinions and concerns about the real estate market.

Talk to a real estate expert before you start your home search or decide to list your current home. This will help you understand what is really happening in your local market and ensure that you have realistic expectations for the entire process.

📊 Our Current Local Market Data: 

Homes in Pasco and Tampa are still in high demand because inventory is so low.

In a seller's market like this, you are going to need a solid strategy for your home search to find the best property at a price that works for you.

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:

• Tampa International Airport has some of the shortest queue times in the world

• Tampa Area Resort Named One Of The Best Waterfront Hotels In The U.S.

• Raymond James Stadium tours will let you walk on the Bucs’ field

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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