The prices are adjusting downward. There are more foreclosures and short sales available than last year. The rates are below 5%. The sellers are more negotiable. Go for it! When the prices start going up and the rates go up, you will think, "I should have bought back when...." That when is NOW.
If you have any questions about investments -- start asking! Real Estate has always been stable over the years. You need to diversify your portfolio to include it.