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House prices expected to fall

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13:02 CEST+02:00
House prices are rising at a slower rate and are expected to start dropping in the next quarter, according to state-owned residential mortgage company SBAB.

For the most part estate agents had anticipated the rate of the slowdown. The small house market in greater Stockholm however has proved an exception. In this instance estate agents underestimated the enduring strength of price increases.

House prices outside of the capital are expected to rise in the fourth quarter. Experts point to an increase in interest rates as the primary cause of a fall in demand and the anticipated drop in prices.

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