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Clear As Glass

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THE SUNCOAST NEWS

Published: January 28, 2009

Is the glass half empty? Is the glass half full? Is the glass about to fall on our big toe? We ask these questions in the wake of a report from the Florida Association of Realtors that housing sales along the Suncoast rose 16 percent in December, compared to a 3 percent decrease in November. Times being what they are, some people are choosing to see a gloomy lining to this silver cloud of housing news.

Pasco County just did away with 29 positions in its central permitting and building inspection units because of a shortage of housing construction to permit and inspect. The county is also planning to hold a series of foreclosure rescue workshops.

Given these and other harsh economic realities, the December spike in housing sales in the region should be good news. Asked about this, however, Lawrence Yun, chief economist for the National Association of Realtors, noted that year to year the median price of a house in the area is down 27 percent, which won't spur an economic recovery.

Cheer up, Yun and other practitioners of the dismal science. This could be a case of housing prices being the lagging indicator. Falling prices usually attract buyers. So if the December housing sales increase continues into January and beyond, this rising demand should boost prices to a recovery-stimulating level - unless someone suspends the fundamental tenets of economics in the interim.

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