The wealth of alarming predictions arising over our current economic and housing market hardships have made many consumerists edgy and frugal. With the plethora of disturbing statistics, such as the almost unprecedented rise of unemployment and gradual global devaluation of the U.S. dollar, room for concern is quite justified.

One expert, Dennis Torres, of Pepperdine University Real Estate, attributes much of the difficulties to his “four horseman” theory. He suggests that the main destructive trends causing the housing market decline are based off high consumerism debt, rising unemployment, the collapse of the sub prime loan, and the coming inflation.

In 2005, he delivered the news of these worrying developments during a conference at Pepperdine University. At the time Mr. Torres was met with skepticism. His dire warnings were dismissed in favor of unwarranted optimism and the belief that there would be a “soft landing” with only slight impact on the market. Unfortunately, with 3.2 million foreclosure settlements filed in 2008, much of what he spoke has come to pass.

Now, Mr Torres is projecting that inflation will take hold over the upcoming two years and that this will naturally impact the property market. He suggests that prudent buying at this time could generate great long term benefits to both personal finances and also the general economic well being of the country. This could be very good advice.

As inflation takes hold and the value of property begins to rise, there could be many opportunities for the smart investor. Some buyers would be deterred by the rising prices and others will rush to purchase when the prices of houses are already appreciating. But the astute buyers will be buying soon and in anticipation of the effects of inflation.

Overall the trend will be of benefit Home owners would enjoy seeing the prices of their homes go up, and sellers will be making more of a profit. This may not completely stabilize the market but, in a time rampant with foreclosures and short sales, this rise will at least give some relief.