Figured it was time to take a look at the "Price to Rents Ratio" of the US housing market. For those unfamiliar with this ratio it is basically a "PE" ratio, but for property. It takes the price of a house and divides it by rent (either monthly, annual, etc., as long as you're consistent, you'll get the same shape graph).
Though nowhere near the peak of the bubble, it seems chronically low interest rates has driven money into the market even though rents may not warrant it. Back in 1960 the ratio was 17, now it's 23. Roughly a 25% overvaluation.
Nothing to panic about yet, but more proof it is federal reserve funny money is indeed causing inflation. We're just happy with this because "housing going up is good" even though people have to buy into this market.
Enjoy the decline!