Nitehowl: I've been here about 25 years..."practically a native," as they say here, as almost everyone is from somewhere else. I live in Phoenix, on the north side of town. If you don't mind excessive heat for 4-5 months a year (a decent trade-off for shoveling snow), this is a wonderful place to live. Lots to see and do in town plus in the nearby mountains.
The housing prices have always been a good deal cheaper here than in most major metro areas. They skyrocketed back in '05-06, then have been dropping steadily along with the rest of the country. Right now, houses seem to be beginning to sell once again within Phoenix and nearby suburbs. But the more affordable, newer ones are the fringes of the metro area are still stuck in the housing muck...nothing moving. The retirement areas tend to be on the outskirts so you could probably get a great deal right now in Sun City, Sun Lakes, Gold Canyon, and other retirement communities.
I'll be happy to provide more insights...feel free to write back with any specifics you may have in mind. And good luck to you as well!