PE to property is a good indication imo. Prices may well be over...

PE to property is a good indication imo. Prices may well be over inflated and headed for a correction/ crash, but I would suggest the serious property investors are well aware that this may happen. When is the right time to buy? I would argue any time the PE stacks up. Hard to find now, but doesn’t mean they are not there. It might take doing a reno/ extension to get the PE. Others say you buy any time you can afford it, as it will average out over time. Lets say your family simply purchased an investment residential property every year for the last 100 years on a buy and hold basis, I think your family would be quite wealthy.
Now what if you only purchased when the PE stacked up, and refinanced when PE’s got very high. You park that money in a Line of Credit offsetting the loan on the property, waiting for PE’s to return to your desired level. Eg If I have a property worth 400k and owe 100k, I could refinance it while its value is at a peak gaining access to 220k (80% of 400k= 320k-100k= 220K). I wont pay interest on that 220k bcos it is offset. When prices do come tumbling down you still have that 220k available to purchase at your desired PE’s, only now you have more cash available to buy more properties at fair value bcos you made the most of the boom prices. This strategy may have allowed your family to purchase 2 properties per year for 100 years, now that’s a filthy stinkin rich family if you ask me. Even if you have 100 properties maxed out right now (and you can afford to hold em) at an average of 250k each and you never buy another, then in 10, 20 or 30 years time (what ever it takes to double in price) you have added 25mill to your net worth. 250k x 100 = 25,000,000 (a mill a year if you think it’ll take 25 years for prices to double).
While it is wise to recognize inflated prices, I don’t think its wise to run scared (not saying your suggesting that). But instead with a long term view, you could use it to your advantage.