As you can see, the real estate prices started to go down in most of the European countries. This synchronized global slowdown affects the liquidity, which can be seen as huge problem not just for homes but capital markets and banking industry Housing prices in Romania have soared over the last 8-10 years, but now they fall back Housing slump is spreading, so the housing markets in Eastern Europe and the Baltic states are cooling rapidly. The saying “what goes up must come down” is applying also for real estate markets. Low interest rates on short term have inflated housing prices but things started turn around. People have thought that prices are going up forever has pushed mortgages out the door but know many people are waking up from the property dream and finding themselves in a situation where prices go down.