Tax Credit Inspires Builders Into Spec Homes

Tax Credit Inspires Builders Into Spec Homes

Some home builders are back building spec homes in the hopes that buyers will use the soon-to-expire tax credits to buy them.

"We know that we're going to have more people out now," says Lance Wright, co-owner of CastleRock Communities in Houston, Texas. "Buying is an emotional decision. Seeing the actual product that you're moving into will certainly make it easier."

Ken Campbell, CEO of Standard Pacific Corp., says home buyers having a brand-spanking new product available could be just the ticket to spur buyers. "It does make a difference if the home is ready, available to go."

Charter Homes is putting up 20 well-appointed spec homes, says Rob Bowman, president of the Lancaster, Pa.-based company. "No matter how tough times are, that's still a luxury that most people look at and say, 'That's something I really want.'"

Source: The Wall Street Journal, Dawn Wotapka (02/10/2010)