Inflation - Too much (or too cheap) money chasing finite quantity of goods

A) Liberty Mutual's Kelly Says Inflation May Rise to 9%  by Devaluing Currency
From Bloomberg Feb 17/2011


B) House prices to match inflation: CMHC
from BNN Feb 17/011

So ..... if we see 9% annual inflation in a few years ..... House prices will ?follow?  or ?not follow?

In late 70's we had 5-10% inflation, but prices were flat (after a doubling in 1972-1974)
Interest was 12% on first mortgages.

In early nineties we had 1-5% inflation (falling rates of annual change) and prices fell 25% from 1990-1996 (after running up from 1985 to 1989) -
Interest on first mortgages was 7-10%.

Where are we now?