Goldwater Institute: -ËœProp 201 Will Prolong Housing Slump- Home Prices Would Increase

PHOENIX The Goldwater Institute, Arizonas premier policy research organization, hsd released a briefing stating that since Arizonas housing market is in a down cycle, Proposition 201 would likely worsen the situation. According to Byron Schlomach, Ph.D, Director of Economic Policy at the Goldwater Institute, Prop 201 would encourage lawsuit abuse because builders and homeowners would be required to pay all legal fees, even if a lawsuit was found to be frivolous, and due to the fact that it eliminates the homeowners right to alternative dispute resolution options. The Goldwater Institute quickly came to right conclusion about the huge cost associated with Prop 201, said Spencer Kamps, Chairman of Arizonans Against Lawsuit Abuse NO on Prop 201. Forcing homeowners into litigation when they simply want repairs made will only cause housing prices to increase in tough economic times as these costs are passed on to home buyers and consumers. All of these measures would add uncertainty for new home builders and current homeowners, Schlomach wrote today in The Goldwater Institute Daily. Builders would have to insure themselves to cover the lengthened warranty period, to insure themselves against buyers who re-neg, and to insure against litigation sure to be spurred by the creation of these new rights. That means home prices would increase right in the midst of a down market, Dr. Schlomach stated. The Goldwater Institute also said that migration to Arizona has fallen as people around the nation are having a harder time selling their homes. Making homes in Arizona more expensive will only make the problem worse and further weaken our economy, concluded Schlomach. For more information on ˜Arizonans Against Lawsuit AbuseNO on Prop. 201 please visit www.stoplawsuitabuseaz.com.