Is MA real estate a solid investment?

Is real estate still a good investment? Recently I have had similar conversations with people encircling the real estate and investment market dilemmas. The stock market is down. The real estate market is down. The banks aren’t paying much on savings accounts or CD’s. Where should you put your money? Would you be surprised if real estate seems to be the consensus?  I am a little biased but someone gave me an interesting analogy a few days ago. He said, ” If I drive by my rental property and one of the shutters is hanging off the side of the house, I can fix it and physically improve my investment. If the wheels fall off my mutal fund, I have no control of who may drive it into the ditch.” I think the real estate market will stabalize much faster than the stock market for the same reason. With real estate you have control. The 2009 spring market should be a “spring fling” of buying opportunity. MA real estate prices are down 15% overall from the previous year (This is an average. Some areas are more and some a lot less). There are bank owned (REO) properties and forclosure properties that will be on the auction block giving plenty of opportunity for first time buyers and investors. First timers will be able to take advantage of declining interest rates and investors will have a wider margin to work with. (Rents are up 4% in the boston area).  BUT!  You will need cash and good to great credit to get the best deals and rates.  The days (at least for now) of no money down for owner occupants and low money down for investors have gone bye bye and sellers will be reluctant to take a property off the market for a buyer working a fine margin. So, be prepared. Have your financing and money lined up so when you find that property you will be ready!