3 Charts Saids Florida Real Estate is NOT Crashing

Whatever you look you see the inflated prices of the Real Estate. The finance social media reinforce the idea that Real Estate is overvalued. Even if you look the chart below you can think the market is overdue for a correction.

The chart shows the logarithm of the All Transactions House Price Index for Florida. You can spot the 2005–2007 peak on the curve, following the dip after 2010.

This chart is too isolated what about bringing the income as denominator:

Now you can see that the prices divided between the Personal Income is still under the 2006 peak.

What about inflation? Well CPI is one of the metrics is used to measure inflation, but in my opinion every currency created is going to potentially increase the inflation in any giving time. That’s why I like to calculate inflation as M2 supply divided by the population. That give us an average of the amount of currency on every person hands. If we chart the Florida House Price Index divided by this inflation we can get this: