Are there economic signs of life?

Well, the Federal Reserve declared the recession over, according to USA Today's "Money" section a week ago, stating, "growth could be more robust than it previously anticipated," but are there signs of economic life in Highlands County?

Opinions vary, depending on which business one contacts. Unemployment in the county hovered around 11.4 percent for August, according to a previous report.

The lumber business can be an indicator for the construction side of things, and Angi Collier, a manager with W & W Lumber, said she is hopeful to see a spike with the winter visitors returning.

Collier said she normally works at the Lake Placid store on U.S. 27 South., but was on call at their Sebring location Wednesday, at the W & W Lumber/Ace Hardware store, located on DeSoto Road, next to the Burger King on U.S. 27 South.

"I really haven't seen an increase," she said. "We've had a few good months at both stores. I think July and August were OK, but July and August were better than September."

She said it's bad, but thinks next month will be the deciding factor with the winter visitors coming back. They've made a few cutbacks on some employee hours, just to play it safe.

While they have a few people buying a board or piece of plywood, the lumber side is geared up to serve its commercial customers.

"We've got a couple of contractors that keep us busy," she said.

Home closings rise

Things in the real estate market "are going really well," said Arianna Jordan-Burke, executive director of the Heartland Association of Realtors.

"The market is picking up," she said. "Home prices are amazing. If you plan on buying a home this is the time to do it."

Sales are up, she said.

Between January 2008 and Sept. 30, 2008 there were 75 home closings in Highlands County. For about the same period in 2009 to Sept. 29, there have been 915 closings.

She's heard more people say they have a closing than they were a year ago, she said.

"The $8,000 first-time homebuyer tax credit has definitely been a success," she said. "Homebuyer interest and housing sales increased almost as soon as the ink was dry on the tax credit legislation.

"Today's lower prices and interest rates appeal to consumers, but it's been the tax credit that has assisted 1.2 million first-time homebuyers to achieve the American dream of homeownership."

"I wish that was all in Florida," she added.

Banking

David Veley, senior lender with Highlands Independent Bank, thinks the recovery will take some time. He hopes things will get better by the end of the year.

"It's tough around here," said Veley. "We're probably going to take a little longer. The first place you're going to see it is when foreclosures start slowing down."

He said the courts are still pretty backed up with foreclosures.

"Hopefully, toward the end of the year we're going to a slowdown in that," he said.

Interest rates are good, but there has to be a positive change in the economy to take advantage of it.

"Construction is hurting because they can't build for what people can buy for," he said, speaking about short sales and foreclosure prices.

The bank is doing a steady lending business with people doing residential refinancing, picking up short sales and foreclosures, but loans for development projects, townhouses and condominiums have been sluggish.

"Which is expected because you have to have a market to back it up," he said.

Federal Reserve predicts a turnaround

According to a Sept. 23 press release from the Federal Reserve System's Board of Governors' Federal Open Market Committee, since the committee met in August economic activity has picked up following its severe downturn.

"Conditions in financial markets have improved further, and activity in the housing sector has increased," the report stated."Household spending seems to be stabilizing, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.

"Businesses are still cutting back on fixed investment and staffing, though at a slower pace; they continue to make progress in bringing inventory stocks into better alignment with sales.

"Although economic activity is likely to remain weak for a time, the Committee anticipates that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will support a strengthening of economic growth and a gradual return to higher levels of resource utilization in a context of price stability."