It is a buyers market right now, and yes, for many people with a long term outlook and income to support a purchase, now is a great time. Both Queen Anne and Capitol Hill are desirable areas for renters and owners alike.
Investment properties are a great way to diversify your portfolio but they do require more work than owning stocks. Normally, I would recommend against condos and townhomes because of the extra monthly homeowner dues, but the areas you mention are very desirable.
Before investing, make sure you do your homework and understand your cash flow. Also be thinking long term (5 yrs or more) for holding the property. I think the days of buying and flipping are long gone (at least in the foreseeable future). Best of luck to your growing portfolio!