From USA Today

After five years of blockbuster home sales, 2006 delivered a reality check for homeowners in Tucson. Sales of single-family homes skidded 33% from 2005, and price appreciation last year dropped to 8%, down from nearly 27% in 2005, according to DataQuick Information Systems.

only 8% appreciation? THE SKY IS FALLING!

“December was a little quiet, and 2006 was definitely a time of adjustment here,” says Martha Briggs, an agent at Long Realty. But last year’s sales figures were on par with the 2000-03 period; they “only look terrible in comparison with 2005.”

What happened to the bubble?

Dave from Barbaralasky.com has some more in depth MLS analysis for the month of December.