Swedish housing market cools off

The cost of apartments in Sweden fell during the third quarter while house prices remained unchanged, according to statistics released by state-owned mortgage lender SBAB.

Swedish housing market cools off
Photo: Bomb Tea

It is the first time since SBAB introduced its ‘estate agency barometer’ in 2005 that prices are reported to have dropped.

SBAB said the dip in the market had been surprisingly sudden, with fewer people bidding on properties leading to prices that were lower than anticipated.

Estate agents were predicting that the slump would continue into the fourth quarter, further driving down the cost of apartments and houses.

“Estate agents are saying that the credit market crisis has had a certain negative effect on the housing market. But the main reason for the drop we are currently seeing is probably that people are feeling the pinch from higher interest rates,” said Tomas Pousette, SBAB’s chief economist, in a statement.

SBAB’s estate agency barometer is based on a quarterly survey of some 200 estate agencies in Stockholm, Gothenburg and Malmö.