The article gives a brief overlook about the situation in building sector in the last years. The correlation analysis is used to show the connection between the price index of new dwellings and development tendencies of GDP in EU northern countries. By EU northern countries the authors define Sweden, Denmark, Finland and Latvia. As one of the recession reasons the authors mention the luck of the “culture of credits” in many countries and tendency to form price bubbles. The tendency to form price bubbles, which means the acceptation of inadequately high price, could be calculated by the specific formula which is mentioned in the article. Based on the results of calculations the tendency to form price bubbles is defined. Using the given classification, development periods of dwelling market are defined. This definition helps to create chart of development variants. The end of the article gives conclusions about the situation and prognosis about future development.