Property Advice

Why is there such a concern for the new home construction industry? Rampant speculation in home building in Utah, Florida, Nevada, California and Arizona created many paper millionaires and drove prices so far out of whack for the vast majority of people in those states. With both new and existing home inventories vastly greater than the number of people able to afford to buy them why should anyone be concerned with the developers that caused the problem in the first place?

Developers should look at building affordable communities with a great potential for home values to increase over time so that people can buy in and then hold their property instead of always trying to trade up. In my opinion, the new home buying tax credit should only apply to existing home sales or new home sales under a certain amount. No one should be able to get a tax credit for buying a home that is over a certain amount (say $300,000). A good guideline for the maximum should be no more than 25% higher than the median home price for an area and the credit should be on a sliding scale depending on how high the price goes.

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