The European housing market appears to be characterised by the house price illusion i.e. the belief that when one house sells for a higher price, other homes will also sell at higher prices and individual wealth increases.
This is how it’s described by the Real-World Economics Review Blog, who charts four-year prices movements for individual countries using Eurostat data.
Economic analyst Jesse Colombo has warned of a housing bubble developing Northern and Western European countries like Finland and Sweden.
Ultimately, it’s a mistake to assume that Europe, or even parts of Europe, have housing markets that move uniformly. Here’s the chart from Eurostat (via RWER) that shows how price changes are all over the place: