Brett John, vice president of Cindy Taylor Trucking and Construction, a St. George-based excavation company that is developing a number of subdivisions, blames last year's land speculation partly on people who took out home equity loans and bought up land in hopes of flipping it at a profit.

"There is no bottom end here anymore, because it's been artificially inflated, but it's going to correct itself without a doubt," John said. "It's absurd to think that a $125,000 home in 18 months rocketed in value to $460,000. And that was happening all over the place. Lots of people made lots and lots of money."

Stephen Wade, who sits on the board of directors for Sun First Bank, said St. George's real estate market is overvalued right now.

"There are people out there that are speculating, and they don't know what they're doing. Our bank is really nervous about that," Wade said. "I had a guy call me from Salt Lake and say, 'Stephen, I've got an extra $30,000 to $40,000. Will you help me invest it in St. George so I can make some money? But I've got to have my money back in six months.' Well it doesn't work that way. You may have to get it back in six years."

But despite this year's expected slowdown, Carter said the bottom will not fall out of the market.

"It's important to me that you don't go out of here thinking that we're either in a downturn or that I'm pessimistic," Carter said. "I am more optimistic now than I was a year ago, because I've seen that self-correction occur."

Others, like Wade, agree.

"I think there is going to be a little settling off, and then I think it is going to take off again," Wade said.

"I remember I had a Porsche once, and I was coming across the country with my mother in it, and I was running about 120 miles per hour. She said to me, 'Oh, son, you're going so fast.' I slowed down to 90 and she said, 'That's much better.' "

---

E-mail: danderton@desnews.com