There is just too much talk in the media about home price declines for the first time in a long time.  The Foothills market has stabilized; a price decline of less than 1 per cent just is not very notable.  Of course,  the prices in Tucson have not gone down in years. This is because prices never went up as much as they did in Spring 2004 - Spring 2006.  What goes up so much, so fast, can not last. Interest rates are at a 3 month low of 6.5% for conforming, 30 year fixed financing and jumbo financing is finally at a desirable 7%. Inventory is good, but certainly not flooded. It is a very good time to buy and not a bad time to sell either. We are not like most of Arizona! The Foothills has pretty much held its value, or gone down a little bit.  Those of us that bought 3 or more years ago can make quite a nice profit if we sell, and Buyers have a nice choice of desirable homes, unlike the past few years.