The National Association of Realtors claims that home prices have fallen the most since 1979. BloggingStocks reports on the extent of the drop in home prices:

The median price fell 7.7% to $196,300 in Q1 2008 down from $212,600 for the same period a year ago, the NAR said. It was the largest year-over-year decline since the NAR started keeping comprehensive records of median home prices in 1979.

While this may not bode particularly well for the economy, it might be a good thing for you. If you can qualify for a home mortgage loan (you will need better credit and a bigger down payment), you can get a good deal when buying a home in many real estate markets.