We may be worried about the huge inventory of homes for sale and soft prices in some areas but the reality is the second quarter saw a large increase in home prices in Arizona overall.

In the three months ending June 30, the cost of buying a home increased less than 3 percent over the first quarter of the year.

Almost 3% in 3 months is a lot of appreciation.

However, I wouldn’t expect much appreciation in the second two quarters of 2006.