I will be there for a week and I am thinking of relocating there or Prescott area.I am going to check out the job market situation and also renting or buying a house.Any other suggestions would be appreciated.

Both Prescott and Flagstaff are very nice places. I grew up just outside of Prescott. If I had a choice, I would live in Flagstaff. It is cooler and it has a lot more to do. During the summer that is where you want to be. You have a ski resort (when there is enough snow), Sedona & Oak Creek Canyon, Verde Valley, Grand Canyon, etc. If you are looking for that kind of weather, but a smaller town feel you should look over in the Show Low area. It also has a lot of "outdoor" type things to do.