NAHB Says Builders Curbing Speculation

Homebuilders have taken steps to curtail speculative homebuying in the nation's hottest housing markets, and speculation in new single-family homes appears to be "quite limited," according to surveys conducted by the National Association of Home Builders.The NAHB found that 82% of the members of a panel of large builders said they would sell only to buyers for owner occupancy, 64% said they won't allow buyers to sell a home before closing, and 55% said they won't let buyers sell during the first year after purchase. And in a national survey of over 500 homebuilders in June, the NAHB found that only 4% of single-family homes were sold to investors in the first half of 2005. "Builders -- especially the largest builders -- early on recognized the dangers of excessive speculative activity and took steps to discourage sales to investors who did not intend to occupy the new homes," said NAHB chief economist David Seiders. "As a result of these proactive efforts, speculative activity in the national market for new single-family homes has been well contained." The NAHB can be found online at http://www.nahb.org.