Phoenix Home Prices Drop...

Phoenix home prices drop, but freefall unlikely, from the Arizona Republic, reports that metropolitan Phoenix home prices have dropped in the past year, but economists say not to expect a freefall in Arizona's housing prices. According to the latest issue of the Arizona Blue Chip Economic Forecast, "worries about a bursting housing bubble have not become reality." It cites information from the Office of Federal Housing Enterprise Oversight that shows Arizona home prices were up 10 percent during the fourth quarter of 2006 compared with the fourth quarter of 2005. Helping Arizona home prices are cities like Yuma, Prescott and Flagstaff, which posted double-digit gains in 2006. The Valley's home prices climbed 3 percent during that same period. Nationally, home prices were up 6 percent. Metro Phoenix led the nation for home price gains in 2005 with an almost 50 percent jump, according to the federal housing agency. The Valley median resale home price fell about 5 percent last year.