Real Estate Price Adjusted by Gold Ratio

[David Song]

This graph shows the real estate price adjusted by gold, from 1889 to 2021. As we are seeing a record increase in housing prices this year, the gold adjusted housing price actually is very low, at a historically low level.

The minimum was reached in 2011, and from 2011 to now, there was not much increase. 

Does this mean that the nominal housing price increase we are seeing in recent years is merely a reflection of inflation?

Shall we still buy into this market?