Gloomy outlook for Swedish house prices

Confidence in rising house prices is declining, according to the August property price indicator from Swedish bank SEB.

53 percent of those surveyed believe that house prices will continue to rise, a significant slump from the previous month when 64% said prices would keep going up. At the same time, the proportion of households which are betting on falling prices has increased, from 14 percent in July to 21 percent in August.

SEB’s indicator figure is defined as the difference between those who believe in rising prices and those who believe in falling prices. The indicator for August was 32, a drop of 18 since July.

At the same time, statistics from Mäklarstatistik have shown that prices during the last twelve months have risen for both apartments and houses, by 17 percent and 9 percent respectively.

However, according to Mäklarstatistik, the increase levelled off somewhat during the spring and the last three months have seen a gradual decline in certain regions.

The statistics are based on the sales of 12,046 apartments and 12,967 houses in May and July.

Properties in Sweden