Whether you look at the housing market or the job market, whether you are trying to fill your gas tank or fill your shopping cart at the grocery, it's painfully clear that things are costing more, and a lot of people are hurting right now.

Meanwhile, the housing sector languishes in a sort of realty limbo, with prices in Georgia remaining flat as a show of strength. Inventory, both new and resale, is uncomfortably high. Buying activity is down substantially or dramatically, depending on whose numbers you believe.

During times like these, there is a natural tendency for all of us to pull back a little bit and say "maybe I should ride things out" and wait for better economic times. However, I believe that is exactly the wrong course of action for smart investors.

This week, I plan to attend an investment conference in Las Vegas, talking with landlords and investors from all over the country. Many are from markets in worse shape than Atlanta's. They talk of neighborhoods with every third house sitting empty.

Yet this same group sees opportunity in the air. The investors at this conference believe that well-selected residential real estate will always be a good investment.

Here is their line of reasoning:

• Yes, there is a general slowdown in the economy right now. No argument that lending markets have made it much tougher for first-time buyers to buy a house. But even so, our economy seems to be doing remarkably well. Most folks who want one are able to find a job. And according to the statistics, home resale prices, both nationally and locally, have largely held their value, despite some notable areas of value volatility (such as here in Las Vegas).

These real estate investors are in for the long haul. They want to buy quality homes in family neighborhoods and find tenants who may have recently been shut out of the market for buying a home.

They are looking for sellers who have decided that selling their home now is more important than getting a top-dollar price, people who can be flexible on their price or their terms. And in today's market, they are finding willing sellers.

• These capitalists believe the current economic environment is temporary. They've been through all this before.

The Fed recently cut the federal funds rate again, this time a quarter of a percentage point to 2 percent, acknowledging the economy is weak, the housing market is still in the doldrums and credit markets remain unsettled. This rate cut signaled the Fed's willingness to intervene as needed to prevent a recession and support the economy. And the economy is bound to improve, especially for the Sun Belt. People are moving to Atlanta from all over the nation because the area is creating new jobs. People still have to have a place to live.

• By using creative financing, these investors believe they can help sellers sell and help renters find clean, decent, affordable housing. Sellers willing to accept monthly payments in place of a lump sum of cash are able to sell quickly to investors. In some cases, wraparound mortgages can solve the problem of paying off existing loans.

And there's more good news for investors. Lender inventory of foreclosed houses is higher than at any time since the savings-and-loan crisis; more and more lenders are accepting discounted payoffs as a way of preventing more foreclosures, and long-term interest rates remain at 30-year lows.

At the same time, the rental market is stronger than it has been in years. People with sub-680 credit scores, limited savings and other financial challenges are having a hard time getting qualified to buy, so they may have to rent for a while.

• All things, including real estate investing, are best in moderation. Today's smart investor sees the current market as an opportunity to purchase a few good deals. Their goal is to purchase one house at a time, then get that house rented with a positive monthly income.

By taking things one step at a time, the investor hopes to avoid getting buried in monthly payments he can't afford.

In a few years, I believe we will look back at this current market and some of us will regret our decision to wait to buy a home. And some will be glad we bought when we did.

Find previous articles by John Adams and more home buying advice on the

ajchomefinder mortgage center.