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Hernando Today

Recession Rains On Parade Of Homes

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By TONY MARRERO

Hernando Today

Published: December 24, 2008

BROOKSVILLE - Everybody may love a parade, but few people in these economic times would likely come to one showcasing the talent of Hernando County's homebuilders.

That's the verdict of the Hernando County Builders Association. The group has decided to postpone its annual Parade of Homes usually held in March.

With a tight credit market and a housing slump, attendance would likely be dismal for the annual event that features models throughout the county to help would-be customers shop for a builder, said HCBA President Dudley Hampton Jr.

"We put on a fine parade every year. Whether we're going to get traffic and draw folks, that's a different story," Hampton said.

He added: "Even if you've got people coming into your models wanting to buy, the banks aren't loaning any money, so we've got to wait for the banks to work through their crisis."

Because of the soaring number of foreclosures in the county, there is a glut of existing homes on the market that needs to shrink before demand for new homes returns, Hampton said.

"We need to get that inventory down," he said.

Builders also are hopeful that President-elect Barack Obama's administration will take some decisive steps and instill more consumer confidence, Hampton said.

The association, which has put on the event each year for some three decades, will revisit the issue in June to consider whether to reschedule the parade for late summer or early fall, he said.

The parade in recent years has featured some two dozen builders and 40 or 50 model homes. The association invests much money in advertising for the event, but the return on that investment would likely be small for members this year, said Scott Nicoletti, owner of Scott Nicoletti Homes Inc. and a parade participant since 1989.

"It's a smart decision," Nicoletti said. "The best you can hope for with a marketing campaign is to get warm bodies in the door, and that's just not happening."

Nicoletti said he doesn't currently have a model home in Hernando - he's taken a "sabbatical" of sorts to wait out the market - but said his workers could put one up in as little as 60 or 90 days when the economic winds of change start to blow.

He said he's convinced there is "plenty of pent-up demand out there" waiting to be unleashed.

"Our employees are ready to jump on it," he said.

Barbara Hahn, president of the Hernando County Association of Realtors, said she wasn't surprised by the association's decision.

"I can't blame them," Hahn said. "Until we get some of those foreclosures off the market, it's going to make it difficult for them."

There is an encouraging sign that inventory may be moving slightly. The number of home sales in Hernando County is on pace to match sales figures in 2007, according to the realtors association.

As of Monday, 1,638 homes have been sold here this year, with an average sale price of $155,400. That's just 19 homes shy of the total sold in 2007, though the average sale price last year was $192,000.

By comparison, 4,031 homes were sold here in 2005.

Reporter Tony Marrero can be reached at 352-544-5286 or lmarrero@hernandotoday.com.

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