Regional house prices vary due to factors like GDP and interest rates, but this study focuses on why prices differ between regions in Sweden. Using economic theory, the researchers created a model to estimate price adjustments in 21 regions. They found that the speed of price adjustment to equilibrium varies greatly between regions, with higher rates in less populated areas. Including a spatial component in the model only slightly changed the results. Overall, the model with individual price adjustments predicted regional house prices more accurately than simple predictions.