I’m sure we would see a similar effect in Arizona as described in this BusinessWeek.com article about California.
In October, the average San Diego home sold for $485,000, a 5.5% decline from October of 2005. The actual number of homes sold was down 21% year-over-year… the average home seller in San Diego made a profit of $243,000 that month.
The article doesn’t mention this but most of that gain is probably going right back into their next house unless they are downsizing or moving out of state.
Nevertheless, home sellers are doing well.