Happy Wednesday!

If you’re a homeowner, there’s a 90% chance that the interest rate on your home is below 6%. This is the case throughout Pasco County and throughout the U.S.

Unsurprisingly, homeowners aren’t giving up these low rates unless they really need to move.

Officials in our area are considering developing new land to help ease the inventory shortage these high-interest rates are contributing to.

Keep reading to see the plans and what’s going on in Pasco.

—Sean

👀 Property Insurance Issues are on the Horizon for Floridians

Farmers Insurance is seeking state regulators' approval to cancel about 30% of its business in Florida, impacting only the company's auto, home, and umbrella policies.

The exact number of affected policies isn't disclosed, but sources estimate that around 100,000 policyholders could be facing cancellation.

Why it’s happening: Insurance companies are struggling in Florida. Our state is one of the most hurricane-prone in the country, and insurers are facing rising costs due to increasingly severe hurricane seasons.

Multiple insurers in Florida have already gone out of business in the wake of Hurricane Ian.

More details: Farmers Insurance officially announced the plan to non-renew policies on Monday. This came just after they filed a market reduction notice with the Florida Office of Insurance Regulation (FLOIR), which they are required to do by law.

Last month, Farmers Insurance had already stopped writing new homeowners policies and tightened its underwriting standards, leading to increased nonrenewals of existing policies.

What happens next? Under state law, if an insurer plans to non-renew more than 10,000 residential property insurance policies within a year, it must provide FLOIR with 90 days' notice.

If FLOIR approves Farmers' filing, the insurer will start the nonrenewal process for auto and homeowners policies within 90 to 120 days, respectively.

How homeowners should prepare: If you’re a homeowner that has a policy with Farmers Insurance, you should start looking at new coverage options ASAP.

Start shopping for a new policy now because it may become difficult to find a new one without increasing your budget.

🤷‍♂️ Floridians Don’t Want to Give Up Their Low-Interest Rates

In Florida, nine out of 10 homeowners with mortgages have a rate below 6%, according to Redfin data.

More details: Redfin's chief economist Daryl Fairweather explains that mortgage holders are trapped in a dilemma.

They have excellent rates now, but they probably can't move without substantial expense.

What does this mean? Understandably, homeowners don’t want to give up their record-low interest rates. The mindset for homeowners has shifted from “Do I want to buy or sell?” to “Do I have to buy or sell?".

Market impact: The current scenario is keeping us in a sellers' market because no one wants to sell. For instance, the Tampa-St. Pete-Clearwater area, which should ideally have six months of inventory for a balanced market, currently has a two-month supply.

A real-life example: Chris Cordona, who bought a new build in St. Petersburg in 2019 with a 3% mortgage rate, faces this predicament. Even if he sold his house for twice its purchase price, he wouldn't be able to buy a similarly valued property with the proceeds.

Is this unique to Tampa? No, the same trend is evident across the U.S. Nationally, nine in 10 homeowners obtained mortgage rates below 6%, while mortgage rates in the country have oscillated between 6% and 7% over the last 10 months.

What's the solution and outlook? New construction, lower mortgage rates, and cheaper home insurance could help restore balance in Tampa's housing market.

However, despite the expected increase in new builds in 2023, it will take the U.S. a decade to rectify the housing shortage.

In the meantime: Buying a median-priced home in Tampa requires more cash than it did in 2021, with some buyers considering adjustable-rate mortgages or buydowns to lower their monthly payments.

🧱 Florida Ag Commissioner Aims to Build More Homes on Rural Pasco Land

Plans have been proposed to overturn the protective measures on a 39-acre portion of rural land in Pasco County, Florida, for residential development.

Who’s involved: Belly Wadding Inc., is behind the request for developing the land. The company has stakeholders that include Pasco egg farmer and Florida Commissioner of Agriculture, Wilton Simpson, and former Pasco school board member, Allen Altman.

The land in question: A few years back, in response to growing residential development consuming farm and ranch lands, Pasco County commissioners established preservation zones in the eastern part of the county.

About 66,000 acres were set aside as a sanctuary for individuals seeking a rural lifestyle and for the preservation of natural features.

The company's request aims to nullify these protections for this specific portion of land to make way for Hilltop Vistas, a proposed development of 117 new single-family homes.

What officials are saying: Pasco County planning commissioners have suggested that the County Commission approve Belly Wadding's request and proceed with the Hilltop Vistas development.

Tampa is experiencing a massive housing shortage along with the rest of the country. Building more homes will help with the growing housing crisis.

Public opposition: Many residents in the region advocate for maintaining the protective measures, arguing against the proposed changes.

Richard Riley, a local resident, views these changes as a potential threat to the rural area, and fears this might lead to the gradual elimination of the entire protective overlay.

Peggie Byrne, a neighbor to the site, questioned why the importance of the rural area has seemingly diminished, and Nancy Hazelwood, who previously advocated for the protection zone, believes that landowners could profit from their land if they pursued appropriate alternatives, like equestrian facilities.

Proposed buffer: In consideration of the request to remove the land from the protection zone, the development plan includes an enhanced buffer to the surrounding land with extensive landscaping.

The buffer between the project property and the Lake Jovita development will be 200-300 feet due to the site's topography restricting construction.

📊 Our Current Local Market Data: 

The Tampa housing market remains somewhat competitive due to the lack of inventory.

➡️ Homes in our area receive 3 offers on average and sell in around 17 days.

➡️ The median sale price of a home in Tampa was $425K last month, up 4.6% since last year.

➡️ The median sale price per square foot in Tampa is $284, up 2.5% since last year.

The bottom line: The shortage of homes available on the market is keeping us in a seller’s market in spite of high-interest rates.

You’ll need a strong offer to purchase a home in these conditions.

We’re staying on top of the market daily and there are even financing options that help you purchase at a lower rate.

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:

• Ice Dreammm in Lutz makes Yelp’s list of best ice cream shops in America

• 23 FL Companies Make Fortune 500 List For 2023

• 8 Reasons Your House Isn’t Selling

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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