Real Housing Prices in Three Banking Crises During the period 1985 to 1995, Finland, Sweden, and Japan each experienced a banking crisis due to a real estate bubble. Here you can see how real housing prices (housing prices adjusted for inflation) in each country rose dramatically and then fell sharply. The sharp fall in housing prices pushed a significant part of each country’s banking sector into insolvency.
Sources: Bank of Finland; Statistics Sweden; Japan Real Estate Institute; Bank for International Settlements; OECD.