Robert Kiyosaki has a great article on investing in today's cooling real estate market, in his Why the Rich Get Richer series.
Personally, I've been putting off buying a new house in my area because of the, to me, outrageous prices on homes. I'm hopeful that some of my dream homes will come down in price to something I can afford to pay on every month. But on the flip side, my house will probably have an even harder time selling in a buyer's market, so it may not even matter. A cooling real estate market will bad for just about everyone.