I have lived here for over 4 years and there has never been a better time to buy in The Foothills.  Some homes have gone down in price as much as 25% from the late 2005 – early 2006 highs.  I do admit this is not seen everywhere in The Foothills, but I have seen it in more than a few homes for sale.  Interest rates are less than 6% for conforming loans under 417K.  And with high credit scores and other strong factors, some lucky people can get a 95% loan if it is 500K or less.  However, inventory continues to decrease as some Sellers are giving up their quest for a sale; therefore, if you are thinking of buying in the Foothills, this time could possibly be the best time ever since prices are fantastic; interest rates are low and  housing inventory is high.  Keep in mind, many parts of the country have much more expensive real estate and do not have the great climate and incomparable beauty of the Sonoran Desert.  And I am not just talking about L.A., San Francisco, Hawaii, Manhattan, etc.  I am talking about Chicago, Boston, Baltimore, Northern Virgina and Maryland Beltway areas surrounding Washington, D.C., to name a few areas that are much more expensive than Tucson Foothills. Most of these areas have had a colder than normal Winter.  Today I am enjoying 70+ degree weather as I look out of my home office at the desert and mountains. I know I am very lucky!