What is the current market condition - dropping, stable, rising?

Median price of a single family home in California These are the numbers, adjusted for inflation in 2000 dollars:2000 $211,5001990$249,800 1980$167,300 1970 $88,700 1960$74,4001950 $57,900 1940$36,700These are the unadjusted values:2000 $211,500 1990 $195,500 1980 $84,5001970$23,100 1960 $15,100 1950 $9,564 1940$3,527As you can see, adjusting for inflation is a fool’s errand, because if the country is in a recession or an inflationary period, it skews the data.

In addition, with gas at $4 per gallon and food price inflation skyrocketing, the American public is on the verge of financial disaster.

Some rehabbers are moving toward 80% and most folks are looking for buy and holds at this point with prices expected to rise 12% next year!

This should even itself out now that prices are on the rise which encourages more owners to list their homes.

I realize that 8% is going to become watered down if inflation increases.

Gold keeps up with inflation and can be part of your overall strategy but parking all your money in gold is not a very good investment idea especially since gold is at record highs right now.

To replace them I have to hire a manager at 30,000 and if food cost rises I am at breakeven.I do not like renting a space because the lease at some point will start rising creating a reverse mortgage affect in that your costs keep going up but your sales and profit may not be able to rise at the same pace due to market conditions outside of your control.At least when you have a mortgage you can take tax deduction for owning the building the land is on plus you are getting principal paydown and hopefully appreciation and cash flow.So from the get go a seller says the value is XX and I say the value is YY because when I buy it this is how it will be operated.

This due to the fact that prices of 'normal sale' homes are rising here, despite all the existing foreclosures... and it will be at that time that I either decide to:-take the deal and run.. and find other interesting ways to buy and sell stuff?

The grill will be lit at 5:00, The good Lord willing even if the creek does rise!