The Morning News has a rare update on the housing boom in Arkansas. "Home buyers will get bargains, and sellers may get less than they ask as the supply of single-family homes outstrips demand, according to a quarterly real estate report. The report said 'there are economic imbalances developing in the residential real estate market,' and 'increases in supply are outpacing the growth in demand.'"

"Benton and Washington counties had 1,518 completed but unoccupied new homes in the fourth quarter of the report, which covers September through November. That's an 87 percent increase from the 812 completed but unoccupied homes available in September through November 2004."

"Kathy Deck, researcher at the University of Arkansas, said the area still is growing at a steady pace of 1,000 new residents each month and there is no slowdown in job growth. However, Deck said the home supply is increasing so rapidly that people can't buy and move into homes at the rate homes are finished. 'This is a time where extreme caution is necessary,' Deck said."

"Deck said home builders may get squeezed and have to reduce prices to sell homes in a competitive market.""The oversupply of single-family homes may continue. There were 16,765 lots in subdivisions under construction in September through November and an additional 19,321 residential lots that have preliminary approval from local planning commissions and city councils. That translates into 36,086 lots, or enough for more than eight years at current population growth rates, Deck said."

"'The supply is so far out there that if demand slackens a little bit, there could be a lot of people in a lot of trouble,' Deck said."

"Deck said banks need to be careful about lending money for more new subdivisions or single-family homes. 'If banks are out there giving money to everybody in the world who wants to build anything, it is really a dangerous time to the market,' Deck said."

"(Realtor) George Faucette said many builders and investors from outside the area have moved in and invested in subdivisions, as Northwest Arkansas hit all the Top 10 lists of best places to live and fastest-growing places in the country. 'It's not like a bubble has been pricked, but sellers are going to have to be more conscious about how they address a buyer,' Faucette said."