The Local Market Guide | Bello Home Team
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💧 Tampa's $21M investment, new homes in Pasco, & mortgage rate buydowns explained

💧 Tampa's $21M investment, new homes in Pasco, & mortgage rate buydowns explained

Check out what's happening in the Pasco and Tampa economies this week.

Sean Bates
November 17, 2023

Happy Friday!

Tampa and Pasco are booming as always this week.

Tampa is making investments for future population growth by working on the city's water infrastructure.

There's also exciting news for Pasco if you are considering a new construction home surrounded by nature. We are getting 1,000 of them in 2024!

We're also taking a look at mortgage rate buydowns since interest rates are staying high. Read to the end to see what they are, how they work, and if they could be a good fit for your next home loan.

—Sean

🚰 Tampa to Invest $21M In Wastewater Upgrades

Driving the News: Tampa is growing, and so is the need for wastewater infrastructure.

Details: Tampa is investing significantly in wastewater infrastructure upgrades to meet the demands of a growing city and protect public health, safety, and the environment.

The city council has approved $21 million for several wastewater infrastructure projects, including the rehabilitation of five pumping stations, the construction of a new pumping station, and the extension and replacement of force mains.

These projects will enhance the reliability and sustainability of Tampa's wastewater system, reducing the risk of overflows and protecting local waterways.

The city is also currently cleaning gravity sewer pipes and installing a wastewater pipeline to Harbour Island.

By the numbers:

$13.9 million for pumping station rehabilitation and new construction
$480,000 for force main extension
$1.4 million for force main replacement
$3.1 million for pumping station rehabilitation
$670,866 for force main replacement
$1,565,000 for force main installation

Why it matters: Wastewater infrastructure is critical for public health and safety. Aging infrastructure can lead to overflows, which can contaminate waterways and pose health risks.

Investing in wastewater infrastructure is essential for protecting the environment and ensuring the continued growth and development of Tampa.

What's next: The city will continue to invest in wastewater infrastructure projects in the coming years. These projects will play a vital role in ensuring the long-term health and prosperity of Tampa.

The bottom line: The investments that Tampa is making now will help lay the foundation for safe and sustainable city growth in the future.

🎥 Why This Lutz FL Neighborhood Is Becoming The Best Suburb To Live in Tampa (Long Lake Ranch)

Your complete guide to determining if Long Lake Ranch is the right place for your family.

🏘️ 1,000 New Homes Are Coming to Pasco County

Driving the News: The Pulte Group is creating a huge new neighborhood in Pasco County near Wesley Chapel and Zephyrhills.

Details: The new neighborhood will be called Riverwood, and it will have 992 houses.

Riverwood is going to be right next to the Hillsborough River and Crystal Springs Preserve. This is special because the land has a bunch of old trees and plants that make it look like classic Florida.

The neighborhood will have expansive homesites with natural scenic vistas of the area.

Future residents can look forward to a variety of amenities including a resort-style pool, clubhouse, fitness center, pickleball courts, nature trails, and other outdoor recreational facilities.

Why it matters: Riverwood will be a great location for people who want the best of both worlds.

You’ll be able to live in a quiet place with lots of nature, but you also won’t be far from major roads and commercial hubs like The Shops at Wiregrass and Tampa Premium Outlets.

The big picture: Pasco County is becoming a hotspot for people to live. This new neighborhood is one of many that is going to serve our growing population.

Between the lines: The original developers' vision for Riverwood is coming to fruition after decades, as the area's growth has caught up with the concept of a community that harmonizes with Florida's natural landscape.

What’s next: The Riverwood community is expected to open in 2024.

The bottom line: Riverwood is poised to set a new standard for residential communities in Pasco County, offering a serene setting without sacrificing the conveniences of modern living.

The new homes will also add some much-needed relief to the housing market that is facing very low inventory.

🤔 Should You Buy Down Your Mortgage Interest Rate?

Driving the News: When you're buying a home, you'll need to make a key decision about your mortgage interest rate.

This rate affects your monthly payments and the total cost of your home loan.

Some buyers consider paying more upfront to get a lower interest rate, known as a buydown. This choice isn't simple and depends on things like your financial situation, how long you plan to live in the home, and the current housing market.

What's a Buydown? A buydown, also called "paying points," is when you pay a fee at the start of your loan to lower your interest rate for its lifetime.

For instance, on a $200,000 mortgage, you might have the option to buy points at a cost of 1% of the loan amount each. You could buy two points for $4,000 (1% x 2 x $200,000), which would reduce your interest rate, often by 0.25% per point.

In this example, with two points, your interest rate would be reduced from 7.5% to 7.0%.

You'll need to figure out if the monthly savings from the lower rate will be worth the upfront cost.

When Should You Consider a Buydown? You might want to buy down your rate if:

You're planning to stay in your home for a long time.
You have extra cash when you close on the house.
You have a great credit score.
You're in a stable financial position.
You want lower monthly payments.
Your income might go up soon.
You don't think you'll refinance your loan anytime soon.

Another kind of buydown: Temporary buydowns lower your interest rate for a short time, like the first few years of your loan. It's useful if you expect to make more money soon.

After the buydown period expires, the interest rate reverts to the original rate. Temporary buydowns are typically paid for by the seller, homebuilder, or lender.

Here are some common types of temporary buydowns:

2-1 buydown: This buydown lowers the interest rate by 2 percentage points in the first year of the loan and by 1 percentage point in the second year.
1-0 buydown: This buydown lowers the interest rate by 1 percentage point in the first year of the loan.
3-2-1 buydown: This buydown lowers the interest rate by 3 percentage points in the first year of the loan, 2 percentage points in the second year, and 1 percentage point in the third year.

Is a buydown right for you? If you stay in your home for long enough, the long-term savings on a buydown could be significant. On the other hand, it's probably not worth it if you plan to refinance or move relatively soon.

Before you decide, talk to a mortgage expert to see if it fits your financial goals. Remember, the right choice depends on your specific situation.

📊 Our Current Local Market Data:

The Pasco and Tampa markets are staying somewhat competitive as we head into the cooler months.

The average home is selling for ~2.5% below the list prices
Most homes are pending in 3-4 weeks
The most desirable homes can sell in ~1 week

Interest rates will be the main thing to watch if you are looking to buy or sell in the Tampa area.

The higher interest rates go, the less buyers there will be. This could lead to sellers having to accept slightly lower offers. Low inventory will balance this out to some extent because buyers won’t have an abundance of housing options.

Many people are moving to Tampa every day, so sellers can expect demand to decrease less here than in other parts of the U.S. if rates continue to go up.

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.