More Swedes expect falling real estate prices

More Swedes expect falling real estate prices
A new study by the bank SEB shows that more and more Swedish households are expecting housing prices to fall.

Of those surveyed, 37 percent believe that housing prices will fall in the coming year.

Compared with last month’s 31 percent, the new figure represents a 6 percent rise in the number of households feeling pessimistic about housing values.

Similarly, the number of respondents believing that real estate prices will increase has dropped from 39 percent to 32 percent.

“Negative economic prognoses, dropping apartment prices, and a falling stock market have given households a gloomy view of the housing market. Interest rates that are two percentage points higher than a few years ago are also straining living costs for households wishing to buy,” said SEB’s Gunilla Nyström in a statement.

The housing price indicators show as well that fewer households are planning to lock in interest rates on their mortgages.

Only four percent of those surveyed who have fully- or partially-variable mortgage rates are planning to move to fixed rates in the next three months. That is the lowest level since SEB started their survey in 2003.

The results of the study come from the responses of 1,002 interviews conducted between January 30th and February 6th by the polling group Demoskop.

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