During periods of high inflation, investors inevitably look for safe, solid investments. Gold, collectibles, bonds and other instruments become more attractive. Real estate is ultimately the safest place one can put their money, because real estate has more inherent value than any of the other so called safe investments.

The intrinsic value of property is further strengthened by the fact that everyone needs a place to live, no matter how bad the economy is. What this means for the current market is that even as the economy slows and inflation creeps up, housing will regain strength as money moves back to historically safe havens.

This may fly in the face of the current media attention on the credit crisis and the subsequent effect on housing, but historical trends don’t die just because of modern fears and artificial bubbles. Already the housing market is bucking trends and picking up.