While demand is still very strong, this is a caution to all the folks involved in residential construction out there.
When supply and demand are out of whack, usually we see prices adjust. So, we have been expecting that prices are going to stop rising at the rate they have been, and there will be a slow down in the increasing prices.
Demand is strong. We are continuing to see this spectacular growth in the area and it is not slowing down.
All forecasts are for interest rates and mortgage rates to go up a little bit again this year. It could let some of the air out of not the bubble but with what's going in increasing housing prices.
We have had such cheap credit for a relatively long period that there may be some sort of market fatigue.
We definitely heard a note of what I would call healthy reality from some of the folks this time. There's a lot of office space in Bentonville and a lot of retail space coming online.
I don't think it is terribly surprising, as we have been watching all the announced projects. I think we will continue having a lot of space coming on the market.
Something is going to happen. It's not like the bottom is going to drop out, but we have to watch.
Frankly, I was surprised by our survey results based on what you hear. I'm not saying some people didn't say negative things, but the responses to our study were largely supportive.
But even with 1,100 people per month instead of 1,000, we still have far too many houses and lots on the market right now.
