Home prices are recovering all around the world, according to the quarterly Knight Frank Global House Price Index.
The index showed housing prices rising in about 50 percent of countries, with the strongest recovery in the second quarter in the countries of Norway, Finland, and Sweden. Australia, Israel, and the Netherlands are also up.
Most of the increases are driven by historically low interest rates and buyer tax incentives. For instance, Sweden's central bank cut the prime interest rate to 0.25 percent, so banks are offering home loans at 1.5 percent.
Source: BusinessWeek.com, Leona Liu (10/13/2009)