Swedish realtors fear falling property prices

And the fact that getting a mortgage these days isn't all that simple either. Most banks require harsh down payments which for new buyers usually takes years (if not decades) to save up. Making a house acquisition more out of reach.

the problem is this 15% down, it has always been that which has caused the decline in turnover of properties. people live month to month in sweden, having over 100,000 just sitting in the bank is not very common. unless you come from a rich family, you are not going to have the funds to buy something.

That and the fact that: Jobs = Money, No Jobs = No Money, No Money = No Buying!

@Canuk

I agree with you. People speculate the house prices, and gossip about more for your money compared to the UK and other nations , but as said, many people in sweden and around the world live on a day-to-day basis.

yes, 15% down payment can be seen as a problem, at the same time property price in Sweden is much lower than UK, France or other EU countries, while salaries tend to be better than in those countries, so if you think you have it bad here, well, it's much worse elsewhere... At least, here, a couple where both earn reasonably well can really think about saving hard for a few years to eventually buy something. That is a feasible plan.

This is the moment, Borg has already played his get of jail card. Now with the financial crisis deepening, unemployment will continue to grow and house prices as well as the economy will collapse.

Borg will then put his hands up and say it wasn't may fault.

But wait there is very positive side to all this, once house price have collapsed, deposits will be a hell of a lot less, look and the bright side.

Sorry that's as long as you don't lose you job.

In Sweden, you tend to pay interest only mortgages, which have virtually disappeared form the UK market.You have 30% mortgage tax relief and no "stamp duty which varies from 1% to 5% of the total price in the UK, depending on the price of the property.As mentioned previously, property prices tend to be much cheaper if you compare with the likes of the UK (rabbot hutches) and other major EU countries. Add to the fact, that Swedish people don't have to pay for University education, then you have an advantage over the UK.

But, just like our parents or grandparents before, we should not expect it to be a right to own our own property. The main problem in Sweden as in the major cities where the artificial rental rates have created massive waiting lists and a black market in 2nd hand properties. This in itself forces people to buy who can afford it, which pushes up prices. Again in our parents/grandparents day, they had to have a good deposit before the bank would lend them money to buy a property. Yet, some people think that they should not have to do that. Yet, that is the very attitude combined with greedy bankers that got us into this credit crunch which is still causing us problems 3 years later. So, a 15% deposit is in my mind the right way. When I wanted to buy my first property, I saved very hard for 2 years, worked overtime whenever it was available, massively restricted my spending for fun things. It was tough, but I did it! I know if I tried to do it now, it would take me longer, but I would have done it. I was brainwashed into not taking on massive debts.

The one major thing that has saved Swedish property prices from going even higher in the past is the Housing Associations rules to stop people from speculating by only allowing the owner to live in their apartment with a few exceptions ie. working way for a year. Add to that the rental price limits and there is no incentive to speculate on apartments. That alone has massively increased prices in the UK, Spain, Ireland etc.

So..in my opinion, you have it good in Sweden. If you're young and don't ave a job despite trying hard or due to lack of qualifications, either go back to education or do as the Irish do....emigrate to another country and try your luck. Better that sitting at home twiddling your thumbs or like a sizeable minority of English...rioting and looting :0)

if the central bank keeps moving interest rates up the housing market will be strained.

the requirement to have 15% deposit in hard cash already puts a strain on people who simply join the long queues to rent at artifical rates.

If rental rates were more market based, more people would consider buying as an option keeping the housing sales vibrant.

the flipside of course is that this would drive up house prices even more and possibly create the other trend where those who can afford to, buy all the houses and rent them at artifically high rates.

the housing rentals need greater regulation and encourage people to get on the housing ladder while keeping the rental stocks for those who can't afford to buy or are just moving on their own, making for a vibrant housing market but one that is cooled by the stock of rental options available.

that said, housing prices in Sweden are not exceptionally high, but compared to the rest of the country Stockholm has some slack to loose, 5 - 10%.