(edit title) Danske Bank's concerns with Sweden's property Prices just too high and set to burst? Options

[byke]

An interesting article concerning fears by Danske Bank, that the Swedish housing market is overvalued and could be set to burst.

Obviously, Danske Bank has had quite a hard time as of late in regards to other european markets.
But still worth a read.

http://www.businessweek.com/news/2012-11-1...u-nordic-credit

[sometimesinsweden]

Imagine if it looks like happening, Riksbank will cut rates again... or not risk raising them.

I think we'll see what has happened in the UK - prices remaining bouyant in Gothenburg, Stockholm and Malmo where there's not enough housing, but the rest of the country's prices reducing.

[skogsbo]

The only element you could argue is over valued are the holiday homes the Danes buy in south, paying over the odds and squeezing Swedes out the market. Relative to the Swedish prices, some Danes have no upper limit and buy the cabin on the lake at all costs. So if there was a collapse, only Danes and some Germans would lose out. Swedes would gain with lots of repossessed homes back on the market!

[Mib]

Byke is going to be a very rich person if all these reports come true. I presume you agree in some part what these reports are highlighting and are placing a bet on the futures market?

If you're lucky, you'll be like the 2 city traders who convinced their Manager in 2007 that the credit crunch was just around the corner and to bet on the futures market that this would happen. £2 billion later...they were proven right and earnt a very hefty bonus!!

Just a point on the housing market, I read somewhere that a very high percentage of mortgage applications were never checked in the UK at the height of the boom years. People and estate agents realsied this and a snowball effect happened where speculators stated they earnt say £100K a year when they only earnt £25K in the hope that they could sell quickly for a profit or just to get onto the first step on the ladder. That as far as i can tell....is not happening here.

[skogsbo]

Yeah, those self employed, had self assessed earnings, many went unchecked.

If byke was a futures trader, he would surely create a unit of doom, gloom or sadness, then apply a financial value to it. Clearly he would be in instant billionaire, given his holdings..

[byke]

I haven't said a thing apart from linking to an article and putting caution since Danske Bank has had problems. But this assertion that its only holiday homes sold to Danes and Germans in the south is just too funny.

#ChipOnTheirShoulder

[Gordy]

Don't be relying on Danske Bank for timing, they have been saying the Swedish property is over priced for over two years now.

But there is no question that the property market has softened considerably down here around Trelleborg, sales volume is down with only the more sought after properties finding buyers, from keeping an eye on my locality I know that some of the dross has been on the market for more than 2 years now and even with prices being steadily reduced they're not finding buyers.

3 years ago it was rare to see any property selling for less than the asking price, now the situation has reversed and it is almost as rare now to see something selling for over the asking price. The norm now is for sales to be between 5-10% less than asking and -15% is not uncommon.