Investing in real eastate right now isnt risky,its flat out foolish!Enron was a good buy once also(according to analysts LOL).The falling dollar will tell you this isnt the time,it has a long way to fall yet.Banks and lenders will get creamed as interest rates will HAVE to rise to slow inflation,which in turn will cause DE-flation.If you dont have your house paid for,you best start saving up!

Real Estate is one of the most conservative and safe investments out there. You have control of real estate and don't have to read online if you made or lost money. The trick is to buy income producing real estate not speculative properties. There will always be a need for rental properties as the cost of home ownership is beyond many peoples reach. Dick

If we understand that we do not need to own SUVs and PickUps, then oil prices will plummet. We will save money that we can use to invest in stocks and real estate. We thought we can have them all!! Wrong! Big Oil is trying to suck dollars out of homeowners who are trying to build equity. If GM and Ford continure to hawk SUVs and PickUps, then stop buying from them. They are up to no good for America! Forget UAW!! Blast 'em to hell!!

I wouldn't categorize real estate as being "long" dead or as a contrarian bet either. Yes, the prices of these home builder stocks have dropped sharply, but real estate prices haven't dropped yet. I believe most people think that prices will go flat or maybe drop slightly, but then recover and start to move up by next spring. Maybe some money could be made in the short term on the home builder stocks, based on this belief. But the true contrarian belief would be that prices will drop by 25% or 30% or more during the next ten years or so. Remember interest rates were bought down to the lowest levels in 45 years. How often does that happen? Once or maybe twice in a lifetime? During this time, housing was over produced and many bought what they can't afford. Higher interest rates, higher taxes, and higher energy bills means higher monthly payments. I would say, until prices drop substantially, don't buy real estate as an investment.

I think the contrarian play would have been selling when the real estate prices were sky high last year! =)

I also echo the above sentiments that real estate pices really haven't fallen from grace. They've merely stagnated or slowly declining. But overall, they're still grossly overvalued in many regions.

No Housing Bubble (Yet)
Keeping the real estate market in perspective is indeed a challenge. Lets take a quick look. My first mortgage for a primary home (in 1973) was 8.25%. Indexed today, that would probably be about 25%. Todays 30 year fixed rate is under 6.5%.
Of course the homes were only $35,000. then, but most people were only making $15000. per year.
So now we have homes selling for $500k and most people are making $100K per year on average.
Your primary (and secondary home) continues to be the best investment you could possibly make. Housing prices today, have been reduced 10-15% from the last two years go-go prices. Now may be the time to buy.
If it is your intent to house and shelter your family, purchasing a home is your best bet. Renting may be less costly averaging the next 3-5 years, but then the advantage of home ownership will pay off. Ask the person (I am one) that purchased rental homes during the last 20 years for $35,000. each. The income generated (average $250k per house)and current house values of $325,000. in even this slightly depressed market has made me appear to be an brillant investor.
Unless the Fed forces a recession by continuing the raise rates, the housing market will firm and return to 5%-8% percent yearly increases.
Other then the Fed's rate increases, there is no economic rationale for a Housing bubble. (?)

LOOK AROUND YOU PEOPLE! REAL ESTATE IS NOT GOING ANYWHERE! EVER HEARD THAT OLD SAYING "WISH I HAD BOUGHT THAT PROPERTY 20 YEARS AGO. I WOULD BE A MILLIONAIRE TODAY". WELL 20 YEARS FROM NOW YOU COULD BE SAYING THE SAME THING. DON'T LET THE NEWS MEDIA AND NAYSAYERS KEEP YOU FROM INVESTING IN REAL ESTATE. REAL ESTATE HAS ONLY GONE UP FROM RECESSION YEARS TO PRESENT, EVEN THROUGH THE VIETNAM ERA AND JIMMY CARTER YEARS OF HIGH INTEREST RATES. WE ARE ONLY HERE FOR A SHORT PERIOD OF TIME. IF YOU OWN REAL ESTATE YOU ARE ASSIGNED TO CARE FOR THAT PIECE OF PROPERTY. IF YOU MAKE MONEY FINE, BUT THAT PIECE OF PROPERTY WILL BE HERE LONG AFTER YOU ARE GONE. INVEST,DON'T LIVE WITH FEAR AND UNCERTAINTY. AND ABOVE ALL BELEIVE IN YOURSELF AND GOD, THE REST WILL FALL INTO PLACE!