As More & More Residents Pour Into The City...

Arizona is a state that is blessed with amazing views and weather -- and a growing population that continues to feed the booming real estate market.

Just as in other parts of the country, spring time is when the real estate industry begins to build up steam. And Ahwatukee, Arizona, is no exception.

This city is home to 85,000 residents. Though part of Phoenix, Arizona, since the 1970's, most residents consider the market and the town itself to be a separate entity.

Buyers this year may be in for a bit of sticker shock when they see how much homes have appreciated in value over the last year. An entry price of $275,000 ($175,000 for condos/townhouses) or more in many neighborhoods is not unusual. Experts in the area note, however, that this is the time to buy -- before prices gear up in the coming summer months.

But 2006 might not be the record breaking year that some predict. One sign: fewer homes are selling.

Phoenix itself has a population of just under 4 million -- and a booming market has been seen for almost half a decade in the region. Why? This is due partly to the simple rule of supply and demand. As more and more residents pour into the city, sellers are finding they can hold out for better and better offers. Thus prices rise.

But as the rest of the nation's buyers begin to cool their heels -- on the tails of rising interest rates and buyer's trepidation over pending bubble bursts -- even booming Arizona could find that the market will cool.