Home permits down, existing sales on the rise

October was an especially bad month for the construction industry as the county issued only four single-family home permits.
That's not much worse than the seven permits issued in September.
It's numbers like these that Commissioner Dave Russell said prompted he and his colleagues this month to cut impact fees almost in half for one year to jumpstart housing construction in Hernando County.
"It's to the point of asking ourselves, 'What is it exactly do we have to lose by at least trying to stimulate business?'" Russell said Wednesday. "We're certainly not losing a great deal in impact fees because we're not generating a lot of money in impact fees."
Russell said he's talked with two people who are waiting for Dec. 1- the date when impact fees drop from the current $9,200 to $4,848 - to move forward on obtaining permits to begin construction.
And while the meager permit numbers in October are not good news, Russell said he expects the industry will turn around in 2010.
By comparison, the building department issued 35 single-family permits in October 2008 and 28 in September 2008.
Nationally, housing starts declined 6.8 percent in October, possibly because of the expiration of the $8,000 first-time homebuyer tax credit deadline. Builders had no certainty that Congress would extend that credit beyond November said Joe Robson, chairman of the National Association of Home Builders.
"However, now that Congress has wisely moved to extend the tax credit into next year and expand its eligibility to more buyers, we hope and expect that this will have a substantial stimulative effect on home sales and help keep the housing market solidly on the road to recovery, according to Robson.
"Builders were clearly in a holding pattern in October as the future of the home buyer tax credit hung in the balance," agreed NAHB Chief Economist David Crowe.

Hopeful signs from existing home sales

The news on the existing homes sale front is more positive.
Florida Realtors reports home sales rose 45 percent in October, with 15,160 homes sold statewide, compared to 10,444 in October 2008.
Florida's median sales price for existing homes last month was $140,300, down 17 percent from one year ago when it was $169,700.
Housing industry analysts with the National Association of Realtors said the sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.
"We're getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth," said National Association of Realtors Chief Economist Lawrence Yun.
Hernando County Association of Realtors President Marilyn Pearson-Adams agreed.
"We have seen an increase in market activity and closings," she said.
She too hopes the extension of the first-time homebuyer tax credit will make it easier for buyers.
"Once real estate starts to move and we get people into these homes, they become engaged in the community (and) start to spend money locally," Pearson-Adams said. "That hopefully means the resurgence of some jobs."