Sweden has housing bubble: politician
Published: 24 Jul 11 10:30 CET | Print version
Online: http://www.thelocal.se/35128/20110724/
Falling housing prices in Sweden, coupled with a shrinking turnover on the housing market and rising interest rates are increasing the risk of a possible housing bubble, writes Tommy Waidelich, the Social Democrats' economy spokesman, in an opinion piece published in newspaper Dagens Nyheter.
- Budget 'too optimistic': Social Democrats (20 Sep 11)
- Swedish housing prices head south (14 Sep 11)
- Swedish housing market continues to slide (16 Aug 11)
Waidelich cites Nobel laureate Joseph Stiglitz's definition of a bubble, claiming Sweden's housing market is at risk of experiencing these conditions.
"If the reason that the price is high today is only because investors believe that the selling price will be high tomorrow – when ”fundamental” factors do not seem to justify such a price – then a bubble exists.”
Waidelich criticises the governing centre-right Alliance for several policies that he feels have worsened the situation on the housing market, such as the lowered housing tax, the ROT tax deductions for building, and the insufficient amount of new apartments built.
"Inflated housing prices are a global phenomenon, but several points of the government's economic policies have fueled this problem," he writes.
In order to soften the blow from falling prices, however, Waidelich is open for cooperation over party lines. He also suggests that subletting apartments should become easier.
What do you think? Leave your comment below.
Seven arrested over Stockholm's Husby riots
Seven people were arrested on Tuesday following the Husby riots in northern Stockholm, with Sweden's Prime Minister Fredrik Reinfeldt warning that the unrest may continue. READ () »
'The future of freedom on the internet is at stake'
Internet policy experts gather in Stockholm this week to grapple with online data protection and surveillance issues that everyone who surfs the web should care about, reports technologist Stefan Geens. READ () »
'Swedishness must be split from being white'
Sweden needs a new story better equipped to deal with and include today's demographic diversity and create a new Swedishness that is separate from whiteness, write representatives from the Multicultural Centre in Botkyrka near Stockholm. READ () »
Body parts found in missing woman search
Human remains were found in a military building in northern Sweden on Monday night during the search for a 20-year-old woman who has been missing for two weeks. READ () »
The 'absolute truth' about tacos in Stockholm
Unable to find good Mexican food after moving to Stockholm to study in 2008, Monterrey native David Licona now finds himself running La Neta, one of the most popular Mexican eateries in the Swedish capital. The Local finds out more. READ () »
Defamation charges for Instagram 'slut-shaming'
Two Swedish teenage girls were officially charged with defamation on Tuesday for their involvement in the "slut-shaming" Instagram account that saw enraged teens in Gothenburg lay siege to two high schools last year. READ () »
Topless woman to be lifted from Swedish map
After a caricature of a topless woman on a tourist map in western Sweden left some residents seething, a local official has promised to have the offending image removed. READ () »
Former Saab CEO arrested for tax crimes
Jan Åke Jonsson, the former CEO of Saab Automobile, and two top-level colleagues have been detained by police on suspicion of tax crimes. READ () »
- 21/05 Seven arrested over Stockholm's Husby riots »
- 21/05 Body parts found in missing woman search »
- 21/05 Defamation charges for Instagram 'slut-shaming' »
- 21/05 Former Saab CEO arrested for tax crimes »
- 21/05 Fresh clashes as more cars burn in Husby »
- 20/05 Riot police 'resorted to racial slurs' in Husby »
- 20/05 Man gets payout for not shaking woman's hand »
- 20/05 Pirate Swede in 'biggest ever' hacking trial »
- 20/05 Youths burn 100 cars in north Stockholm riots »
- 19/05 Man held over armed jewellery store robbery »
More news from Germany at thelocal.de
- 21/05 Notre Dame evacuated after man shoots himself »
- 21/05 French ministers face grilling over tax scandal »
More news from France at thelocal.fr
More news from Norway at thelocal.no
- 21/05 Richemont brands sale mooted after resignation »
- 21/05 Report narrows causes of fatal Sierre bus crash »
More news from Switzerland at thelocal.ch
In cooperation with DoToday
Register now for:
> Free use of noticeboard
> Special discounts
> Weekly news roundup
> Unlimited use of discuss
- Key Account Manager - Retail / E-tail
- Managing Director Swedish Qualification Centre
- Sales Manager - B2B
- Territory Manager - GastroIntestinal Solutions - Sweden/Finland
- Application Engineer
- Enterprise Risk Manager
- Salgsassistent / Sales Assistant
- SW Engineer, Sony Mobile Communications
- Application Engineer
- Business Development Manager
"BANG!!!! BANG!!!! BANG!!! In the midst of the Stanley Cup’s Eastern Conference semifinals series, every Bostonian knows it is all about Bruins ice hockey. Oh right. I am in Sweden, home of the 2013 International Ice Hockey Federation GOLD Champions. And there is certainly no doubt ice hockey fever has taken over Sweden. A lot of Swedes,..." READ »
- 16/5 08:32 Be British, be sincere and be bold (Brits Mean Business)
- 13/5 22:40 Week 20 matches (Stripes News)
- 19/4 15:47 UK and Sweden sign Defence MOU (The Diplomatic Dispatch)
- Key Account Manager - Retail / E-tail
- Managing Director Swedish Qualification Centre
- Sales Manager - B2B
- Territory Manager - GastroIntestinal Solutions - Sweden/Finland
- Application Engineer
- Enterprise Risk Manager
- Salgsassistent / Sales Assistant
- SW Engineer, Sony Mobile Communications
- Application Engineer
- Business Development Manager
- 17:21 Husby Riots and violence against the police...
- 17:21 Found out I'm pregnant!
- 17:17 Driving Licence Risk course part 2 in English?
- 17:14 Job prospects for British GP/family doctor
- 17:06 Getting a mortgage if my wage is paid overseas?
- 16:59 Labor/Swedish Laws regarding Forced Vacations
- 16:10 Swedish Summer Language Classes in Malmö?
- 15:39 Can you recommend an excellent immigration lawyer?
- 15:20 Investment market in Sweden
- 15:06 Something you dont know about SWEDEN
Casa Birgitta in Algarve, Portugal. Reduced price in best location. Private estate on white sand beach. All amenities included. Book here today! edward_george1@hotmail.com
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
The government would do well by scrapping those taxes and force banks to hand out 100% mortgages according to your solvency. It's very hard to save up money in Sweden simply because the government likes to strip you off every penny you earn. If they can't change the current situation accordingly, there should be a tax relief for those wanting to save up to buy a house.
The price goes down, then the price goes back up. The only people who loose are the people who do panic selling. Patience is the key word with investments.
When house prices fall it is generally in conjunction with a slow down in economic growth AND activity. meaning people arent paid the sort of bonuses they WERE getting etc etc and ya would generally have more (if even only by point zero percentages) people unemployed.
(love that name!!)
Abe....although your argument was good.....you made the cardinal sin of saying that the banks should hand out 100% mortgages. Never ever should this happen. Purchasers have to learn to save when buying such a large valued asset. The higher the downpayment, the more realistic the house prices will be.
A 100% mortgage takes the value of the property out of the equation and solely looks at ability to repay.
Where as when you have a deposit to put down on a house, it reflects a genuine monetary level. Which the market will dictate never becomes exorbitant.
When china goes..say good buy to australia and vancouver. two of the worlds worst housing bubbles
100% mortgages should never be allowed.