The Polk County, Fla., economy cooled off in February, due in large part to a slowdown in the Central Florida housing market. According to The Lakeland Ledger, which compiles a monthly “Polk Business Barometer,” the county’s Realtors sold a total of 447 existing homes in February, down nearly 5 percent from the year before.

In Lakeland, the 272 homes sold marked a slip of just 0.4 percent from the 273 sold last year, while sales in East Polk County (which includes Bartow) totaled 175 — a drop of 11.2 percent from last year’s 197.

“We’ve expected existing home sales to weaken for some time. It does appear that we’re starting to see that trend manifest itself,” said Gordon Kettle, an economic consultant to the county and professor at Webster University and Polk Community College. “I’m not expecting anything too traumatic or dramatic… but at some point the housing market has to cool.”

Economists have long predicted a Central Florida real estate market cool-off as Florida home loan rates and home prices rise. But most believe that local housing demand and prices will probably remain relatively strong because of the county’s population growth and desirable location. Even as home sales fell in February, 1,191 permits for new home construction were filed — a record for the month and up 40 percent from a year prior.

Polk recorded a 3.3 percent unemployment rate for February, down from 4.3 percent last year and unchanged from January. The jobless rate set a record low for February, but recruiting firms concerned about the small labor pool. Local tourism revenue, meanwhile, amounted to roughly $11 million in January (the most recent month available), reports the Polk County Tax Collector’s Office. That figure includes hotel and vacation home rentals, and increased slightly from the $10.96 million amassed in January 2005.

Also, taxable retail sales totaled about $776.9 million in December, the most recent month available from the Florida Department of Revenue — this marks an increase of about 1.96 percent from the previous year. The bottom line? Despite lingering concerns, Florida’s economy and housing market remain vibrant at present. While some think the market is shaky at best, the surge in permit applications suggest otherwise. Look for Central Florida home loan demand to stay high, and for local real estate to post a reasonably strong year.