House prices nudged down slightly at the end of last year – but the biggest price drop was in Eurozone countries.
Across the European Union (EU), values fell a negligible 0.1%, while the single currency zone saw prices fall 1.4%.
The figures come from Eurostat, the official statistical body for the EU and cover the final three months of 2013.
Looking back to the previous quarter, homes dropped in value by 0.7% in the last quarter and 0.3% for the EU.
Countries with the biggest fall in house prices were Croatia, down 14.4% in the year, Cyprus with a drop of 9.4% and a decrease of 6.3% in Spain.
The biggest increases were in Estonia (15.6%), Latvia (7.9%) and Sweden (7%).
Rising and falling markets
Overall, out of the 28 EU nations, 11 saw prices fall, 14 increased, and one– the Czech Republic – stayed the same. No data was available for Greece or Poland.
The markets falling at the fastest rates from the third quarter to the fourth quarter were Hungary (-1.8%), Spain (-1.3%), Denmark and Italy (both -1.2%).
The largest increases for the same period were Latvia (2.7%), Estonia and Lithuania (both 2.6%) and Ireland (2.5%).
Falling house prices can reflect a lack of confidence in buyers and lenders in the economy. This leads them not to commit to funding large purchases with debt because they fear their finances might suffer.
This can put a dampener on economic growth and suggests Europe is lagging the UK in returning to growth.
UK house prices
Buyers and lenders in the UK are promoting economic growth by investing in homes backed by government initiatives to keep the lid on risk.
The latest House Price Index figures from the Land Registry shows homes in England and Wales went up in value by 5.3% in the year to the end of February 2014 and 0.7% month-on-month.
The average house price is quoted at £170,000by the Land Registry.
Many industry observers consider Britain is ahead of the Eurozone and many EU countries in the recovery cycle following recession and that the housing market is one indicator that proves the point.
The popularity of London has a property investment destination for the wealthy from around the world is also helping put a glow on UK house prices, which are not so scintillating if the capital is removed from the equation.
