With interest rates still at historic lows, and investment opportunities in single family homes abundant, 2008 may one of the best years to invest in 30 years.
Even if prices drop a little more within the next twelve months, you may still be getting a great deal over the long term given the low interest rates which may not be around in the years to come.
It is best to stick to well-located detached single family homes in well researched markets that offer good prospects for growth and resale down the road. Middle of the road, bread-and-butter homes might be best in most cases for attracting your largest resale market.
Duplexes also make for smart investments but remember they are a little more difficult to sell because your typical buyer will probably be another investor.
And finally, avoid condos since you lack the control you have in single family units. Condos also require extra due diligence to make sure that you are not buying from speculators or developers at prices above market value or where there is excess inventory for sale.