Glut of Available Homes Bogs Down Polk County Real Estate Market
A glut of new home inventory continues to bog down the Polk County housing market.
Last month, building permits for single family homes dropped to 393, nearly a 48 percent decrease from 750 in March 2006. Following the 2005 housing boom, builders were left with an overabundance of homes.
That, coupled with hesitant Florida mortgage borrowers, has caused the market to slow down, making it a prime time for home buyers, builders insist. They can now be more selective in their choices in homes.
Eagle Lake is one of the small pockets in the county that is flourishing with new neighborhoods.
Last month, builders in the city pulled 10 permits, up from one a year ago. It’s a significant increase for a city that has had little growth in recent years.
“We still should be getting some in from Squires Grove and Eagle Pines,” said Lisa Freeman, Eagle Lake’s building clerk. “These are the two that are going now.”
And they should be keeping the city busy for a while. The subdivisions will bring in about 400 homes when complete. As long as Florida mortgage rates remain low, buyers should re-enter the market because sellers are bringing prices way down.
Moreover, with the residential growth comes commercial development. A new gas station and small retail shopping strip have also followed along the U.S. 17 corridor that divides the city.Lakeland also had a slight increase, 17 percent, from 53 home permits in March 2006 to 62 last month. Lake Alfred’s new home volume remained steady at four homes each year.
But more are supposed to be coming with a new development by Dallas-based Centex Homes, which plans to build a 170-home subdivision.
“These guys are putting in homes people can afford,” said Tim Wallace, the city’s building official. “And a few other things are in the works. I just can’t talk about them yet.”
Builders across the nation started 1.52 million homes in March. This is a 23 percent decrease from last year’s total of 1.97 million.
The Ledger reports building permit totals because Polk County does not track housing starts.
