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House prices 'will keep falling'

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House prices 'will keep falling'
10:18 CEST+02:00
House prices are set to continue falling in many parts of Sweden during the autumn, according to a new report from mortgage lender SBAB. Apartments and houses in Gothenburg and Malmö will fall in value during the third quarter, while prices in Stockholm are set to remain stable, the report says.

The dampened housing market means that the difference between asking prices and sale prices will get smaller and that homes will take longer to sell.

Real estate agents blame the fall in prices on the large number of homes for sale combined with weak demand. Further rises in interest rates from the Riksbank could lead to a further fall in demand.

"Estate agents are expecting the housing market to remain weak in the third quarter. The time it takes to sell, which has already become significantly longer, is expected to get longer still. Bidding on properties is also expected to continue to get weaker, particularly in Stockholm," wrote Tor Borg, SBAB analyst, in a statement.

SBAB based its report on a survey of 220 estate agents taken between 9th and 23rd June.

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