Housing prices hit the roof
Paul O'Mahony · 22 Feb 2007, 16:38
Published: 22 Feb 2007 16:38 GMT+01:00
While this is an extreme case, housing prices across the country are continuing to rise. The price of an apartment in Stockholm city centre is fast approaching 60,000 kronor per square metre.
According to statistics released earlier this month, the price of houses in Sweden has risen by 7 percent and the price of apartments by 10 percent over the last year.
In the greater Stockholm area, low supply and high demand have combined to keep price moving upwards.
"The market is lively and demand is high. But there is usually a lot more on offer half way into February.
"Many of the sales now being made are reaching extreme levels and anybody thinking of selling has the possibility of getting a very good price at the moment," said Jonas Lindell from estate agency Notar in a statement.
Notar had expected many more people to put their homes on the market when the Riksbank announced that interest rates would reach 5 percent within a few years.
Although the Swedish central bank has now had a rethink and predicted lower rate hikes, Lindell still expects an increase in the number of properties on the market, though not to the extent previously anticipated.
"It is possible that we overestimate the effect of interest rates on housing prices. When all is said and done there are few people who speculate on their homes.
"Supply and demand are the two most important elements when it comes to prices, and the reasons for supply reaching a record low are actually a mystery.
"The only reasonable assumption is that it will soon start to increase," said Lindell.