In view of the stronger economic outlook for Europe and continued high energy prices the financial market generally expects interest rates to rise further in the near future.
This will lead to lower housing prices than would otherwise be the case, perhaps even slightly decreasing housing prices, but for as long as the favourable economic development continues, there are no prospects of considerable large-scale price drops. BIS Review 34/2006  1  As in so many other respects, this is by no means an open and shut case.