Slump continues for Swedish housing prices
TT/The Local · 12 Nov 2008, 08:26
Published: 12 Nov 2008 08:26 GMT+01:00
The financial crisis and falling stock prices have begun to take their toll on housing prices.
The median price for an apartment fell by 10 percent, while prices for houses dropped 5 percent between September and October, according to Mäklarstatistik, an organization which monitors the real estate industry.
The numbers confirm a weakening in Sweden’s real estate market which has forced many sellers to accept lower prices for their homes.
In central Stockholm, apartment prices fell by 5 percent in October to an average price of 45,790 kronor ($5,700) per square metre.
Nevertheless, apartments downtown appear to be holding their value better than those in the suburbs, as a measure of prices across the greater Stockholm metropolitan area shows a drop of 9 percent.
In Gothenburg, apartment prices have fallen by 7 percent in the city centre, and 4 percent for the region as a whole.
Meanwhile, prices in central Malmö have dropped by 3 percent, while prices for apartments in the suburbs have actually inched up 2 percent.
Houses have long resisted a drop in value despite continued interest rate hikes and a weakening economy.
But it now it appears as if prices for houses are also being dragged down by the steady pull of grim economic developments.
The average price for a house in Stockholm sunk by 8 percent from September to October, to around 3 million kronor.
In Gothenburg, the price of a house fell by 5 percent, while in Malmö prices were down 9 percent.
“We aren’t surprised that the month of October also shows negative numbers in the market for houses. Right now the market is being affected by the fact that sellers and buyers are still having a hard time agreeing on the price,” said Lars Killander, head of the Association of Swedish Real Estate Agents (Mäklarsamfundet) in a statement.