Foreclosures down, new home growth stagnant

Foreclosure filings in Hernando County are down 54 percent from last year.

From January to August 2010 the county clerk's office recorded 1,693 foreclosures. That compares to 772 for the same period this year (as of Aug. 29).

Single-family permits continue to nosedive.

Last year, there were 124 permits filed with the building department from January to August. This year, through Aug. 30, the permits total 79, or 36 percent fewer.

Brenda McDaniel, Hernando Builders Association (HBA) executive officer, said until the economy improves, people don't want to take a chance on spending money to build a new home.

"With the economy not getting any better and unemployment is still high, nobody's looking to build a home, let alone buy one," McDaniel said.

McDaniel said builders continue to compete with lower priced foreclosed homes, which continue to glut the market.

If a buyer is willing to spend the money to repair some of those distressed homes and bring them up to code, they can be a good deal, she said.

On the existing home front, there were 223 sales transactions in July, down from 233 in July 2010.

The average sales price last month was $99,400, up from $98,400 a year go. The average house stayed on the market 114 days last month, compared to 84 in July 2010.

Laurie Neiman, president of the Hernando County Association of Realtors, said the increasing average sales price for homes is a positive sign and is hopeful that the existing home market is rebounding.

"We were really hard hit but we're finally starting to stabilize," Neiman said. "I think in our market people are seeing the value and they're starting to buy."

In Hernando County, people can buy a larger home with a more expansive lot than other counties in the region, she said.

Statewide, existing home sales rose 12 percent in July, according to the latest housing data released by Florida Realtors.

"Realtors in markets across the state are reporting increased activity from potential homebuyers who are ready to take advantage of historically low mortgage rates and current availability of affordable housing options," said 2011 Florida Realtors President Patricia Fitzgerald.

The statewide median sales price for existing homes last month was $136,500; a year ago, it was $137,700, or a 1 percent decrease.

The National Association of Realtors said 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.

Nationwide, sales of newly built, single-family homes held virtually unchanged in July with a 0.7 percent dip from the previous month.

"The fact that new home sales fell by less than 1 percent in July is an indication of how little conditions have changed in the housing market," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB).

Nielsen said there remains a "climate of uncertainty in which consumers are reluctant to go forward with a major purchase for fear of what economic news tomorrow might bring."