"The housing price boom of the late ’90s: did infl‡ation
targeting matter? by Sébastien Frappa and Jean-Stéphane Mésonnier, June 2009"
From that I extracted two critical information that fit pretty well with the current context.
"As households are confident that the central bank will not need to raise short term interest rates in a foreseeable future because they think that inflation is on check, they will tend to believe that observed and projected growth rates in housing prices are sustainable.
Since their expectations of low future interest rate should increase mechanically their assessment of the present value of houses considered as assets, they will be more willing to buy housing property at high current prices (compared to historical records).
Finally, they will be less reluctant to finance their home acquisition through mortgage contracts with adjustable rates, which are generally cheaper than fixed rate mortgages."
This is exactely what is currently hapenning in Finland.
"Since 1970, nominal housing price growth has fluctuated widely in developed economies with four expansionary phases:
-in the early and late 1970s,
-in the mid to late 1980s and
-from the late 1990s to the mid-2000s
and three slowing phases:
-in the mid 1970s,
-the early 1980s
-the early 1990s.
Note that, while housing price busts are normally characterized by a significant drop in real house prices, nominal house price defation is rare and was associated in the past with episodes of severe economic downturns, such as the recessions in the early 1990s in Finland, Norway and Sweden.