Where is the market headed? Watch the signs, and count the 7-11s

The million dollar question. I get asked every day by buyers and sellers. I get told every day by buyers and sellers, buyers that the market is going to go down further when the "hidden" foreclosures come to the market, and sellers that the market will be up next year as long as they can rent their place this year to cover their payment. I do not have a crystal ball. Or, another way to say it, I do not have a crystal ball. I do think we have to pay attention to signs and try to figure out what is happening. A big sign in LA that is going to get bigger is 7-11. At one time there were 1,500 7-11 stores in LA, now has 800. I was surprised when I was in Santa Clarita today that there are NONE in the area at all! An article in the LA Times last week detailed the company's plans to nearly double by adding 600 stores in 7 years, and doing so now will let them improve their real estate costs as well as expand. They also feel they are hitting the market for lower priced options where their coffee bars and hot dogs are cheaper alternatives to Starbucks and fast food. Seems like the bottom has been hit in the entry level housing market. In every location I work the bottom level homes are selling for 10-20% higher in price than just 4 months ago, and the competition is staggering. Southern California still attracts immigrants from all over the world and increasing numbers of people will need places to live, eat, and buy Slurpees. How, I am looking for the article about Nordstrom's plans to open new stores. Anyone seen it? The full text of the LA Times article can be found at: http://www.latimes.com/business/la-fi-seven-eleven24-2009jul24,0,7883938.story