The value of my little inner-city condo, which I own outright, has skyrocketed to a such a ridiculous degree that I am considering selling it, pocketing the cash in gold, and living in a tent until the prices crash into the depths of 2010. Then I’ll buy four houses.
I'll say right now - that will not happen. The demand for physical assets over paper and for US real estate over almost any other asset class from foreign buyers virtually guarantees that prices will be significantly higher in inflating US dollars five years from now, whatever short-term gyrations the market goes through.
What people miss is that real estate can "crash" in value relative to commodities, gold, or other real assets but still go up in price as measured in rapidly inflating US dollars. You might still be somewhat better off selling and holding the gold, but the difference won't be as stark as it is for those who, say, hold cash or stocks.