You've sort of raised three separate but related issues here, they are best taken point by point.

You mentioned that your in-laws bought a house for 90k about 20 years ago.  Twenty years ago, parts of Mesa were like Maricopa is today...out in the middle of nowhere.  And do you remember what happened about 17 years ago?  The market tanked, and those who bought their houses for 90k were wishing they hadn't, since prices were dipping drastically as we entered a recession. 

It's the same sort of thing now.  We're in a slowdown tha thas affected all corners of the economy, and of course real estate is no different.  Prices will sag until income levels support its increase.  This increase cannot be mandated by home builders, they can raise prices all they want, but if folks don't have the money to buy a house at those prices, the builders aren't going to make any money whatsoever.  Economics 101 teaches us that supply and demand meet where they can...and right now supply so far outweights demand that prices have to be low in order to compensate.  That's just how the game works.'

(And incidentally, I'm not sure where you got the information about Maricopa being the lowest of the low in terms of prices, but it is factually incorrect.  See Johnson Ranch, Queen Creek, and Buckeye for lower prices both on average and  in specific locales within each jurisdiction.  Remember - as imperfect as Maricopa is, it is still much, much closer to central Phoenix and the jobs therein than any of those cities...which is always a plus.)

As for the second point regarding certain segments of the population moving in, that's a distinct possibility but I wouldn't worry too much about it.  Folks who move out here have to be secure in the knowledge that they're in for an awfully long commute and some rather "interesting" city management.  People who are only looking at Maricopa in terms of dollar signs are going to be dissatisfied once they land here anyway, so they won't last long.   And if they do, so what?  There are enough good and decent folks here to outweigh any potential knuckleheads by a wide magin.

Your third issue is more about public perception than anything else.  Parts of Chandler smell foul.  Schools in Mesa aren't wonderful.  You see, the problems we have here are unusual, but they're not completely unique. They are merely duplicates of problems enjoyed by cities all over the nation.  The fact that ours are broadcast live and in stereo on things like this webboard and in the rumor mill just means that those who support this town and want it to be successful have that much more work to do to correct and debunk myths and hyperboles as we hear them.  Yes, there are problems in town.  No, they're not fundamentally any more severe than problems had at this stage by far more famous towns like Chandler, Scottsdale, or (gasp) Beverly Hills.  (For decades in the 20th Century, Beverly Hills had a sewage smell that would seep into homes, not to mention a train line running right through the center of a residential area which meant horns were blowing at all hours and ruffling feathers.  Sound familiar?)

So now you know what to do the next time you're confronted by such negativity.  In the meantime, try not to harbor any of that negativity within yourself.  Things are tough now, but they won't be tough forever.

I don't think that the wrong kind of people can get mortgages as easily as they could just two years ago. So I doubt that they are buying out here, Also, the wrong kind of people generally contribute to their community when they own property. It's when the wrong kind of people rent, and are allowed to move into a property without an adequate deposit and a credit check, and then skip on the rent, and do it over and over again, it's trouble.

I've seen this to two landlords on my street.

Thank you, friend!  That is very kind of you to say, though I don't think I'd work out too well on a city board.   

It sounds to me like you are making the right decisions for you right now, and that's about all any of us can do.  So good for you!  This is a perfect time to "cocoon" a bit and wait for the market to correct itself.  And of course, I agree with you one hundred percent about relaxing as much as possible during negative times. 

There is that which is within our control, and that which is beyond it.  The economy may be beyond it, but how we live and think and interact is all perfectly within our span of control.  We have the power to look at this in historical terms and realize that nothing is permanent.  And, like you mentioned, we have the power to make small changes that can keep us happy even when things on the outside aren't so great. 

The bottom line is that this too shall pass.  The good times didn't last forever, and these bad times won't either. 

Leon, note that when MusicAddict said "wrong type of people," she absolutely wasn't referring to things such as the blue-collar/white-collar distinction (as she said in her post), but those who would take specific actions such as graffiti/otherwise disrespecting property, etc.  That's ALL she meant by the "wrong type of people."  I know that she would consider anyone who does good things for the community and just seeks to make a better life for themselves--regardless of income, profession, etc., as the "right type of person."  How do I know this?  Because she is my wife and I know her very well, including the things that she has done for others.

As another point, if someone's property value tanked 30 or 40k, they are far from being in a position to move somewhere else unless they are already well off enough to be able to pay that money out of pocket when they close on the sale, so you're not exactly being realistic by boiling it down to only "one must do what they feel is right."  For many people at this point, there's really no choice but to stay until the market improves again.

I'm not sure what she meant. She said "but if prices get so low that even those who didn't finish the 6th grade(lack of better phrase) can afford to buy a home here,we're in trouble"

The quote seems to equate lower home values to lower educated people. Earlier in the paragraph, she mentions Maricopa being middle class. So my conclusion would be that home prices would encourage the lower class and less educated to move here. Hence, "the wrong type of people". It also stated no prejudice was meant. But, In my view,the statement could easily be seen as prejudging or stereotyping.

I don't agree with your second point. One always has the ability to move. It may not be on the exact terms desired, but nothing is stopping any of us from packing up and taking a ride up 347 to never return.

If one decides to stay, it's a choice. There is no such thing as reality. Only one's perception of reality is true.

I do admire you for speaking in defense of your wife. Please, read the paragraph before "one must do what one feels is right." I didn't want to believe that changes in economic fortunes could lead someone to see someone else as the wrong or right type of person.

In a way your point is sound. The principles of doing what one feels is right and of making one's own choices are best done from a position of advantage.  But that is all the more reason that doing homework before choosing a place to move or selecting a certain house or mortgage or the exact timing of the purchase is so vitally important.  Because that is when you are in the best position to make the informed decision, it is when you have the most leverage.  You are correct that for some people, the terms of leaving now would not be amenable to them.  But, unfortunately, it was bound to happen at some point.

For those people who feel unable or are otherwise unwilling to make the sacrifices to leave at this juncture, the best option is to be happy with what you have.  That's what the other half of the populace is doing...not a single one of us is getting through these times unscathed.  And when you think about it like that...safe in the knowledge that we're all in this ballgame together, it should at least offer you that small comfort. 

I  have to largely disagree with you about reality being nothing more than perception.   This is akin to thinking that you can stand in front of a car and prevent it from hitting you by simply changing perceptions, when the truth is that if you choose to keep standing in the middle of a street, either the car will stop or you will be hit--no matter what you choose to perceive.  To me, this is what reality is--objectively observable events/consequences that cannot be changed by altering your perceptions. 

In terms of my personal reality, I'll tell you what my 'perception of it' is--if my wife and I wanted to move out of here at this time, we would need to have the money to cover the current depreciation on our house, which is far beyond our means.  So our choice is (a) stay and deal, (b) move and face financial ruin.  That consequence of (b) is, indeed, a reality, in that no change in my perceptions is going to eliminate or change it.  Yes, there is a choice, but talking about freedom of choice is really nothing more than an abstract and pragmatically meaningless platitude when the objective consequences of one of the two choices are pretty much disastrous to the person making the choice.  Where exactly are you disagreeing?  Do you see a third option that I am missing?  Or are you saying that my perception that foreclosure and financial ruin would be disastrous is meaningless because it is a perception?  In that case, I'd have to ignore your advice as it wouldn't be pragmatic or grounded in, again, what I would consider to be reality.  One cannot casually disregard the possible negative consequences of their own actions, chalking them up to "perception," and hope to survive very long in this world.  I don't mean to get on your case about this, but I just can't accept advice that I don't see as being at all pragmatic.

BTW, if I am sounding frustrated or trapped in my situation it is for a reason much more serious to me than a temporary economic downturn.  My wife was (very) recently diagnosed with valley fever.  In someone who is healthy it is not a big deal, but in someone with chronic illnesses a recurring infection like this can be very serious.  Coming from the Northeast, we did not really know much about it.  Although we did close to 9 months of research before buying our house, we did not learn the fact that Maricopa has a couple of factors making it a hotbed for valley fever, or its effects on people with chronic illness. I think it's one of those things you wouldn't come across unless you specifically knew to look for it already, as it's not publicized because it's not such a big deal for people with normal, healthy immune systems--who would fight it off sucessfully once and then not have to worry about it.  During all of those long months of research into buying a house, we never came across this anywhere.  The long and short of it is, we're dealing with this now (and even have an appointment with a specialist in Tucson later today), but living in a place like Maricopa, my wife could keep getting reinfected with it, a thought that is pretty scary given what it can potentially do to her.  I only wish that changing my perceptions could alter all of this. 

In a way your point is sound. The principles of doing what one feels is right and of making one's own choices are best done from a position of advantage.  But that is all the more reason that doing homework before choosing a place to move or selecting a certain house or mortgage or the exact timing of the purchase is so vitally important.  Because that is when you are in the best position to make the informed decision, it is when you have the most leverage.  You are correct that for some people, the terms of leaving now would not be amenable to them.  But, unfortunately, it was bound to happen at some point.

For those people who feel unable or are otherwise unwilling to make the sacrifices to leave at this juncture, the best option is to be happy with what you have.  That's what the other half of the populace is doing...not a single one of us is getting through these times unscathed.  And when you think about it like that...safe in the knowledge that we're all in this ballgame together, it should at least offer you that small comfort. 

In terms of your first paragraph, I agree.  My wife and I did about 9 months of research before moving here.  I guess we did not foresee things continuing to tank quite as much as they have since we moved here in May.  Hopefully we're somewhere near the bottom!

In terms of your next paragraph, see my previous e-mail.  The valley fever (which was just diagnosed) now puts us between a rock and a hard place.  I'm trying to be optimistic here, but it's difficult at the moment.  Maybe I'll have something to be more hopeful about after we see the specialist this afternoon...

I agree with you here, and my wife definitely would also.  I think that either of us would define "right" or "wrong" by a person's actions and conduct.

Leon and GilaGuy, thank you for your thoughtful posts and kind wishes.  We saw the Valley Fever specialist today, and got some very good news. The specialist says that if my wife had Valley Fever (and even the positive test doesn't provide 100% certainty that's what it is), her body appears to be having the normal reaction of fighting it off, and she has not contracted the disseminated form (when it becomes chronic and is with you for life), which would have showed up by now. This is great news, because once you fight it off in that manner you develop an immunity to it! It seems that her other symptoms are from auto-immune disease--not exactly great, but at least we do not have the complication of Valley Fever on top of it, and don't have to be in fear of it from living in Maricopa. Needless to say, we are extremely relieved!

Now we are in the same boat as everyone else, just waiting for the housing market to turn around (whenever that happens) and for continued growth in Maricopa.  Choice a just became a lot easier.

GilaGuy--do you know of any new builds in Queen Creek that are currently selling for as low as $90K? I think MusicAddict's impression about the lowest house prices being here comes from the fact that she was looking at real estate listings in Queen Creek for new builds and didn't see anything that low. She also spoke to people in Queen Creek about those starting prices, who said "You've gotta be kidding--they're not even starting that low here." 

I also think that when people drive by from outside of Maricopa (to go to the casino for example) and see that sign "starting in the 90s," that it gives us a  reputation of being a place with absolutely dirt-cheap housing (which is confirmed anectodally by things people say when I tell them I live in Maricopa).  I'm not sure if that's a good thing. 

I'd be curious to know your thoughts on all of this.