Throughout 2009, chief executives across the Central Florida Region have shared their views on a variety of issues and topics in the monthly business news magazine, FirstMonday.  Republished here for our Every Monday readers, we invite you to take a look at their thoughts.

Each of these business leaders responded to the following two questions from FirstMonday:
What has been your company’s key in weathering the economic storm?  How long will it take for market correction to reach a point where the housing industry can be described as healthy?

Jim Cooper
President
Home Builders Association
of Metro Orlando

“The Home Builders Association of Metro Orlando, like many other businesses and associations, has had to make some adjustments in the way we were doing business due to the extreme economic downturn. Our leadership has cut and consolidated where necessary, and the office is officially open four days a week instead of five. Yet, the level of service is still very high, and the members feel they are still receiving a great return on their investment. We are financially one of the strongest HBA associations in the state. The key has been the ‘teamwork’ attitude of our staff and members.”

“The housing industry will not be healthy again until the lending institutions release money to qualified buyers and the banks cease using ‘short sales’ and foreclosures as comparables during the appraisal process. The current excess inventory of finished lots and homes has to return to a normal level, and it is definitely moving in that direction. I think we have hit the bottom of the residential market, and my guess is it will take another 12 to 24 months to absorb the excess inventory then slowly return to pre-2003 absorption levels, which are healthy and sustainable levels.”

Suresh Gupta
Chief Executive Officer
Park Square Homes

“Our ability to survive is tied to our employees multitasking and the ability to react quickly to an ever-changing environment. Maintaining a tight rein on overhead and cash flow have been critical, and the staff’s assumption of ever-increasing and broadening responsibilities allowed us to right-size the business to the available opportunity. Park Square Homes realigned the core business so that we could serve the first-time buyer and reduce the dependence on the move-up market, which is having difficulty selling their existing home.”

“Orlando is a vibrant market that is temporarily suffering from reduced demand caused by the bursting of the national housing bubble and the increase of national unemployment. We are dependent on tourism [local and foreign] to drive our economy and both are suffering. New unsold inventory has declined, but recovery requires the absorption of a very high level of foreclosures. A healthy housing market will take a while; only after people can be secure in their jobs and the unemployment rate declines will the house market bounce back.”

David Kohn
President
ABD Development Co.

 “To weather the economic downturn, we instituted several critical measures, internally and externally. Internally, our strategy was to reduce debt, reduce operating expenses and defer new acquisitions. We made substantial use of more public relations and more-efficient advertising choices to market our homes. Externally, we made major changes to respond to new market demands. These include smaller, smarter luxury homes, lower pricing, more energy efficiency and more ‘lifestyle’ value.”

 “In some respects, the housing market is already healthy. Homebuyers are seeking smaller, smarter homes with more lifestyle value. This is a substantial improvement over the recent market bulge, when everyone was racing to buy the biggest home imaginable. In terms of volume, some areas of the market are improving rapidly. Baby-boom adults, who are seeking second homes and retirement homes in Florida, are increasingly active. People who delayed retiring are now feeling pent-up demand and will eventually create a surge in the market. We expect to pronounce the housing market ‘healthy’ again in 2010, possibly as early as the second quarter.”

Stay tuned for future insights and opinions from these key community leaders who are helping to make Central Florida strong.

Central Florida Partnership - Ideas to Results
Improving Central Florida’s economic vitality and quality of life by focusing on transportation, public policy advocacy, regional leadership, entrepreneurial growth and regional planning.  

Orlando Regional Chamber of Commerce
Shaping our community’s future by focusing on what matters to the millions of people who call Central Florida home.     Your business.  Your community.  Your future.  Your chamber.  

For additional information, visit:
www.centralfloridapartnership.com
www.orlando.org