BUBBLE BURST? Swedish Home Prices Fall Dramatically


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Just last year the Economist was noting that Sweden’s housing market was dangerously overvalued, coming fourth in figures compiled by the British newspaper.Now, it looks like that bubble may have burst, with Radio Sweden reporting that house and home prices in the country dropped 11 per cent in the last month of 2011.

Next door, of course, things are not too rosy either. Last week Professor Robert Shiller warned that Norway’s housing market looks dangerous — “This really does look like a bubble,” he told business newspaper Dagens Næringsliv (via The Local).