CPI includes rent which has gone up 2.7% per year averaged out since 2008 [0]. I wouldn't call that extreme. As for stocks, the S&P 500 P/E ratio is about 20 which is pretty much average for recent times [1].
Yes, but rent didn't increase the same way as property prices, which is what makes those properties overvalued in the first place.
Also, averages are misleading. Of course people will first buy property in "good" areas, not "average" areas. If you look at rent or property price development in San Francisco, you will notice that.
> As for stocks, the S&P 500 P/E ratio is about 20 which is pretty much average for recent times [1]
The CAPE is at 30, double the historic average and higher than at the top of the bubble in 1929 and every year since then up until the dotcom bubble. Again, averages are misleading. All you can say is that we haven't reached dotcom levels of valuation yet.
[0]: https://fred.stlouisfed.org/series/DTENRX1A020NBEA
[1]: https://www.macrotrends.net/2577/sp-500-pe-ratio-price-to-ea...