Agreed. The real estate example is about as far from an example of a free market as you can get. It is in fact a very heavily regulated market.
Not sure I agree with you about the Scandinavian model though. I hear this cultural/racial homogeneity argument a lot (almost already from Americans) but I see little evidence to support it.
Australia for instance is a heavily multicultural society and, while not going as far as the Scandinavian model, is a fair example of social democracy.