Sputtering Central Florida Housing Market Hasn’t Dampered Polk County Economy

The Polk County job market continued to hum in October even as the Central Florida housing market exhibited another sluggish month, according to The Lakeland Ledger’s monthly “Business Barometer.”

The county’s jobless rate for October, 3.4 percent, marked a new record for the month, besting the previous record of 3.7 percent in October 2005. Last month’s rate also was down from 3.8 percent in September, according to Polk County officials.

Job growth also was strong in October, as Polk added 6,400 jobs since the previous year. In keeping with ongoing trends, hiring was strongest in professional, education and health industries, while the retail sector lost 400 jobs and manufacturing shed 300 jobs.

But the housing market continued to sag, as Polk County home builders pulled 338 permits for new construction last month, a 57 percent drop from 783 in October 2005, when the county was enjoying a housing boom.

Even as Florida home mortgage rates remain at historically low levels, a glut of inventory and massive amounts of speculative buying inflated home prices to the point where a cooldown period is inevitable.

In fact, every Polk city experienced a drop in new home permit totals, with the exception of Dundee, which saw no change, and Lakeland and Fort Meade, both of which had an increase of just one permit from last year.

Existing home sales also fell last month. October’s total of 421 homes was down 22 percent from 537 the prior year. Sales fell more than 20 percent in both Lakeland and East Polk County, while Bartow recorded 12 homes sold, up from eight last year.

Lakeland Realty owner Arthur Mattson said that inventory is still very high, meaning that buyers aren’t feeling rushed to make a purchase. In addition, the market is entering its slow season, he said.