Realtor Dave Fitzgerald says the economy tanked at an inconvenient time of year for the housing market.

“As the stock market plummeted, it's at a time when our sales would usually drop, but we may have seen them drop a little bit more," says Fitzgerald.

Fitzgerald says sales are down 13 percent locally and prices are down slightly. But he says people looking for a home in the Eau Claire area shouldn't be afraid, because the loan crisis isn't as bad here as it is around the rest of the country.

Realtors say people are looking for more starter homes, which are more modest and within their means, and lenders say they've also seen that trend.

“It's nice to see people being a little more budget-oriented than they were before," says Bryan Renton, mortgage originator for United Bank.

Fitzgerald says these homes are going faster, and there is fewer available—meaning when it comes to more modest homes, it's actually a seller's market.

"In fact, it's a really good time to move up. You’re going to do fairly well on your entry level house as far as selling goes because there's enough buyers in that price range," says Fitzgerald.

Realtors say if you're planning on moving on up, or looking for your first home, here are some things to keep in mind.

First, prepare yourself by knowing your credit score, and analyzing your credit report to see if there are any errors that could easily be fixed.

Secondly, find a lender that you can trust, with whom you feel comfortable discussing your financial history. Make sure the lender explains things in a way you can understand.

Thirdly, be realistic about what you can afford with your budget. Don’t expect that your income will increase at the same rate each year. But also, don’t expect your lender to make your budget out for you.

"We more along the lines say show us what you can afford and we'll build an actual purchase price around that,” says Renton. “Have a budget in mind before you come see a lender, and if you need help, a decent lender should be able to help you make one.”

If you've found what you're looking for in your price range both realtors and lenders say it's a good time to go for it.

"In the short run you might have some ups and down, but in the long run it's a good investment,” says Fitzgerald. “But first and foremost, it's a place to live."

Lenders say even though Fannie May and Freddie Mac loans are not as reliable now, there's plenty of financial aid still available through federal FHA loans, and also through USDA rural housing loans, which many areas on the outskirts of Eau Claire and Altoona would qualify for.