New figures from state mortgage company SBAB and Booli show that the decline in house prices in Sweden continued in November.
Nationally, home prices fell 1.4 percent, with declines of 0.8 and 0.7 percent, respectively, for apartments and houses, he writes. Industry today (De).
Adjusted for seasonal effects, the decline in home prices was 0.5 percent.
DI also wrote that you now have to go back to 2015 to find the same real price level for apartments and 2017 for houses. If you compare it to peak prices, the decline in house prices is 15 percent if you add houses and apartments together, says SBAB chief economist Robert Buege.
“We actually think prices may drop a little more before they turn around. We expect it will take until February and March before we see bottoms in apartment prices.”
Sweden’s central bank, Riksbank, decided earlier in November to keep its key interest rate unchanged at 4 percent, after interest rate increases began in February 2022.
“Inflation is still very high and there is still a risk that it will not continue to fall quickly enough and stabilize at the target level,” he added. “But inflation has fallen and inflationary pressure has clearly declined,” the Riksbank wrote in a press release after the announcement.
According to DI, many market players expect interest rate cuts from next summer. Despite this, SBAB’s Boje does not believe there will be any sharp recovery in the Swedish housing market next year.
“Our expectations are for prices to be fairly stable, with an increase of 2 percent,” he says.
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