Home builders seek to curb speculative buying

Home builders have been taking steps to curb speculative home buying by investors in the nation's hottest housing markets, according to a series of surveys conducted by the National Association of Home Builders.

"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, " says David Seiders, the association's chief economist. "As a result of these proactive efforts, speculative activity in the national market for new single-family homes has been well contained."

The association conducted three surveys earlier this year to assess the degree of concern by home builders about speculative activity in local housing markets, to gauge the extent of speculative newhome buying, and to determine how home builders are responding to the threat of speculative activity.

It says its research has uncovered "a good bit of concern" about speculative home buying, which refers to purchases driven solely by the lure of short-term capital gains. It says its research also found that many builders are taking steps to discourage sales to buyers that don't intend to occupy the homes.