Now that the housing slump is in its third year, many buyers are reluctant to take a chance on real estate with the continuing price declines, foreclosures, record gas prices, job losses, and general economic uncertainty.

But the news isn't all bad for buyers. In fact, for some the timing couldn't be better. The lower pricesat least in some marketsare making homes affordable for first-time home buyers and more attractive for investors on the lookout for fire-sale discounts.