Yes, it is a buyer's market.  While it is not the buyer's market of the boom days, it is a good buyer's market for investors to hold and rent and smart buyer's who are buying for the long haul (5+ years) and have pretty good credit.

There is a decent inventory on the books and loan rates are still at an amazingly low point.   I just had a deal come together in Castle Rock on a $215,000 property.  The buyer has good credit and got a 30 year fixed FHA loan at 4.25% with no buy down points and a down payment of 3.5%.  The payment on the principal and interest for the $212,143 loan is only $1,043.62 per month.  I remember paying that much on a $100,000 property in the early 1990's. 

Property prices seem to be stabilizing. It is still a "by area" scenario.  Prices are still slowly sliding down in one area, while they are starting up just a little ways down the road.   If a buyer is looking to own for more than 5 years, it is a good time to buy with today's prices and interest rates.   Even if the property value goes down a little more, it will return and increase as the market begins to grow again.   If you are in for the longer haul, you are not likely to get hurt.  

There are not a lot of fix and flip opportunities right now, but for investors looking to buy and hold as rental property, there are deals to be made that can create good cash flow.  It is about location and being patient while you look.