Where would you be working? That will determine, to a large extent, what areas you would want to consider for a home and what kind of commute you'd be in for.

During the housing market frenzy, new homes sprung up in many of the outlying areas. Those areas are now leading the way down in home prices. And, I'd avoid them unless your job allows you to work from home. They will look like bargains....homes that sold for $250k in 2006 can now be had for $60-$75K. But, the commute from these locations is brutal if you must work in Phoenix.