The European Commission expects house prices to fall slightly this year. In the Summer Forecast, published the Community Executive warns, however, of “persistent variations between countries”.

In a report in which it reviews growth in the euro zone and the European Union downwards, the Commission clearly says that “housing prices in the EU are expected to fall slightly in nominal terms this year, with persistent variations between countries”.

“While high mortgage rates are expected to weigh further on housing demand, housing supply is expected to remain limited in most EU countries, limiting the potential for a widespread fall in house prices.”

This limitation in supply is due to the fact that “residential construction has fallen in recent months in most EU countries” and the Commission “expects it to decline further, as suggested by the decrease in construction permits”.