With the economy as it is, and the problems with the sub prime, would you say this is a good time to invest in real estate, or is it too risky?
The real estate markets are all affected by changes in the economy, but so many local factors are present that it's difficult to make broad statements to answer your questions.
The sub-prime market is affecting lenders and borrowers who have secured loans using less than prime interest rates or variable rates. These terms have led to foreclosures and defaults, putting those lenders in between a rock and a hard place.
However, for the real estate investor, it might still be a good time to invest in real estate. Depending on your credit and the real estate market in your area, you can still find great deals and investment opportunities. For instance, where I live, the lower-end markets are struggling, but the higher-end homes and properties are still selling well.
You must examine the markets in your area, talk to real estate professionals, and determine what kind of investment(s) you are interested in. As they say, buying a home is one of the very best ways to save your money.