I would stay away, but the relatively low prices at the moment carry far less of a danger to investors than there was at the 2006-2007 peak.

Definitely stay away from condos, unless you get a bargain. There are enough condos to satisfy demand until 2025, according to certain studies. Condos are also most susceptible to huge price dips. Also, condos complexes can change quickly. The nice, upscale condo complex of today could be a hotel or short-term-rental flophouse of tomorrow.

Right now you can actually get a good buy on renting houses, as many bought up Vegas homes at "bargain" prices, and now have the properties up for rent.