Builders nationwide stave off market drop

Home builders are slashing prices to keep buying activity up since the first-time homebuyer tax credit expired at the end of April, according to the Wall Street Journal. While many developers nationwide, including Lennar and Beazer Homes, accelerated their speculative building to capitalize on the tax credit, its wake is leaving some with extra inventory on their hands. Jody Kahn, a vice president with John Burns Real Estate Consulting, said that the decision to cut prices may be a way to ride out the tide. “[They] want to keep the momentum going,” Kahn said. “Traffic and sales fell off pretty dramatically in May.” [WSJ]