Swedes predict property price increase

Swedes predict property price increase
The number of Swedish households expecting housing prices to increase in the next year has grown to 53 percent, compared to 41 percent a month ago, according to SEB bank's latest property price indicators.

At the same time, the number who expect housing prices to decrease has fallen from 19 to 13 percent.

“Extremely low interest rates, increasing stock prices and a somewhat more favourable economic outlook have led households to be more positive vis-a-vis the housing market,” SEB economist Gunilla Nyström said in a statement.

The study also revealed that very few households are planning on securing a fixed interest rate on their mortgages in the next several months.

“Households do not expect the Riksbank to maintain the 0.25 percent interest rate for another year, although they still anticipate a rate of less than one percent. That’s a reasonable explanation as to why so few are considering a fixed rate,” Nyström said.

The housing price indicators are based on 1,000 interviews conducted between August 26th and September 2nd.

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