(edit title) European Soverign debt crisis and Sweden How will it affect Swedish housing prices Options

[hatim]

I am interested in knowing your opinion on how Eurozone sovereign debt crisis is going to affect Swedish economy, especially the Swedish housing prices.

What I can speculate is that if Greece goes bankrupt (and is kicked out of Eurozone, and some other countries follow suit, or even the worse case all Eurozone countries part their ways and there is utter chaos) the banks would not trust each other at all or any one for that matter. There would be very little lending going on, giving rise to a housing crash (especially for overpriced housing such as Stockholm apartments).

On the other hand Swedish government had some experience of dealing with such shenanigans in the 90s so they might have a trick (few billion SEK) up their sleeve.

What say you? whats your speculation?

[PDX]

Housing prices will crash only if demand evaporates (as has happened with million(s) of vacant properties in Spain, Greece etc).

Demand for Stockholm apartments is as strong as ever, don't fantasize about a crash during this decade

~~~PDX~~~

[rtharper]

What about a small dip in prices for us first-time buyers in the next 2 years?

[PDX]

Don't worry about dips, you will not get the timing 100% right anyway

The 1990s crisis in Sweden was an entirely different situation; SEK was fixed against the pre-euro ECU, interest rates shot up to 500% and so on. Unthinkable for today:

http://www.nytimes.com/1992/11/20/news/20iht-swed_2.html

~~~PDX~~~