In this essay, we analyze the impact of monetary policy on both the Swedish and Swiss real estate market for the period 1987 to the first quarter of 2021. We use Katrakilidis and  Trachanas (2012) work, where we got inspiration from to use the Autoregressive distributed lag model (ADL) to examine the link between monetary policy and Swedish as well as Swiss housing prices. Our final results denote that there is a presence of explanatory power from the interest rate, the tool of monetary policy to the housing price index in both countries. In both Sweden's and Switzerland's case, we can see that there is a positive outcome in the HPI in0,014 respectively 0,773 per 1 % increase in the real interest rate, meaning that there exists an impact of monetary policy in both of these countries in the short run.