Home sales in Washington County saw a dramatic increase throughout 2004 and in the beginning of 2005. Yet from August through December, sales of dwellings dropped by 26 percent, according to Southern Utah Title. And sales of lots, which peaked in March 2005 at 360 transactions, fell to 226 in December.

In addition, the average price of a single-family home in Washington County fell to $276,821 in last year's fourth quarter, down from the third quarter's high of $283,313.

Vardell Curtis, chief executive officer of the Washington County Board of Realtors, said 2005 was still the area's best year in terms of the number and value of real estate transactions completed. But Curtis said a glut of new real estate inventory has flooded the market over the last six months, which may result in a "tapping on the brakes" in 2006.

"We're transitioning from a period of time where you might have had eight people that wanted to buy your home, now to a period where you might have to have a little help to find a qualified buyer," Curtis said. "With more inventory, I think what that's going to mean to sellers are they might now have to allow for a contingency or wait for a buyer's closing until they sell their home."

Joe Larsen, president of Split Rock Development Group and one of the co-developers of The Reserve at Snow Canyon and nearby Entrada, two of the area's most exclusive enclaves, said some people are blaming high-end buyers for Washington County's escalating home prices.

"The high end in the market, for the most part, hasn't gone up nearly as much as the lower price points," Larsen said. "People would come out here and say, 'Gee, they're getting $700,000 to $800,000 for a 2,300-square-foot house.' In other parts of town a 2,300-square-foot house was $300,000. So people would say, 'Look, they're the ones that have made this happen.' But obviously not all 2,300-square-foot homes are created equal."

According to Southern Utah Title, less than 5 percent of all new and existing home, condominium and townhome sales in 2005 were priced above $500,000. Yet nearly 55 percent of all sales last year were between $200,000 and $500,000.

Wood said most people in Washington County blame the presence of investors and speculators over the past 18 months for high land and housing prices.

"Unfortunately, there are no data on speculators or investors," he said. "Those working in the market are convinced that hundreds of people have made big money buying and selling land. However, the bloom is off the rose. Since prices have escalated so fast, it is very difficult to find developable, cheap land or to rent investment property and generate enough revenue to cover high mortgage payments. And the farmers have wised up. They want top dollar for their land."