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Quarterly Rank: 5
Quarterly Price Change: 3.6%

Annual Rank: 13
Annual Price Change: -2.0%

There has been a sharp slowdown in the number of houses under construction, keeping housing supply down and prices up. In Sweden, construction started on 45% fewer houses in the first half of 2009 compared to the same period in 2008. The country's real estate market has been recovering well, as prices didn't skyrocket out of proportion compared to other European countries during the property boom.