• Sweden's news in English

Swedish home prices buck financial crisis

TT/David Landes · 29 Dec 2009, 16:40

Published: 29 Dec 2009 16:40 GMT+01:00

Facebook Twitter Google+ reddit

Since 2000, house prices have nearly doubled, while prices for apartments increased by 160 percent.

When the financial crisis hit in late 2008, attendance at home viewings dried up and prices began to sink, prompting a number of analysts to predict a continued fall in home values through most of 2009.

But following a series of hefty interest rate cuts by the Riksbank, the Swedish housing market made a solid recovery.

Through November, prices for houses have risen between 9 and 11 percent nationwide, while apartment values have risen by between 15 and 19 percent.

Continued tax cuts and a growing belief that the effects of the economic downturn may not be as bad as previously feared have also helped keep Swedish home prices afloat.

“When the signs of an economic downturn began rolling in, many potential home buyers, quite naturally, got cold feet,” said Claudia Wörmann, lead analyst at the Association of Swedish Real Estate Agents (Mäklarsamfundet), to the TT news agency.

Story continues below…

According to a survey of estate agents conducted by the association, the housing market will likely remain unchanged in many parts of the country during the first quarter of 2010.

TT/David Landes (news@thelocal.se)

Facebook Twitter Google+ reddit

Your comments about this article

17:27 December 29, 2009 by CptAmerica
For some reason Swedes haven't learned anything from the financial difficulties of the 90's and the more recent variation.

This is the very definition of a bubble mentality. Wait till inflation picks up and watch them fall.
22:34 December 29, 2009 by CanadianEh
The reason they have not learned is because they want to be American (in Swedish accent)
23:46 December 29, 2009 by wxman
Hello! The whole world is feeling this crunch. Why should any country be immune? After all, this is a global economy we live in. Catch up, OK?
09:06 December 30, 2009 by Keith #5083
Swedish property remains some of the best value deals in Europe.This 'bubble'

has not even begun to be formed, as modest price rises (fuelled in my area in no small way by purchases from non-swedes for holiday homes - eg.German, British,Dutch,Norwegian) have affected the market this last 12 months.

Even in 'hard times' international bargain hunters find the resources for a good deal in a good country.

As for 'learning' perhaps it's worth reminding some folks that the 'Swedish financial crisis rescue model' of the early 90's became the template for UK and American rescue plans of their own frothing economies and have been acknowledged as such by financial and political leaders in both those countries.

PS. I am not swedish but like to be fair!
10:29 January 2, 2010 by Gordy
According to The Economist magazines latest global house price index Swedish home prices are overvalued by 34.7% according to historical averages of rental yield.


Given the way that Swedish mortgages appear to be structured, with a large percentage of the mortgage amount "interest only", rising intrest rates are bound to have a negative impact on Swedish house prices. As interest rates are at an historical low then the question of them rising is not "if?" but "when?"
21:42 January 4, 2010 by Raul el australiano
I have come from Spain and still see house prices in Sweden relatively cheap compared to what I am used to seeing in Spain, where salaries are much lower... Adjustment? well, prices do not seem to be falling as much as they should in Spain!! Let´s give Sweden a couple more years for the balance to turn...
13:01 January 7, 2010 by popein

The report from "The Economist" is interesting, but it's too general and I'm not sure it really applies to Sweden, given the price of rentals is not free market here. Also, there are many factors influencing the prices as they mention, that 34.7% is just a quick number which is not taking into account any of those.

Also, it's not uniform through the country, I guess in Stockholm particularly in the short term all this construction boom will push the prices down because of there will be more availability of homes, and at the same time interest rates raising will also push the prices down as less people will be attracted to buy; on the other hand there will be other factors to consider.

I'm not an expert so I can't say much, but my point is that 34.7% from The Economist doesn't mean much.
Today's headlines
Löfven: 'Sweden will double its number of troops in Iraq'
Stefan Löfven and Haider al-Abadi during the visit on Monday. Photo: Henrik Montgomery/TT

Swedish Prime Minister Stefan Löfven has promised to double his country's number of troops in Iraq following a meeting with Iraqi counterpart Haider al-Abadi on Monday.

Will Swedes soon be looking for fairtrade porn?
Should Swedes think fairtrade with porn? Photo: Karin Malmhav/SvD/TT

A fairtrade attitude to pornography would be beneficial, Sweden's health minister told The Local.

Presented by Stockholm University
Nordic fashion in focus at Stockholm University
Simon Paulin/imagebank.sweden.se

Nordic fashion took centre stage in the Swedish capital last week as Stockholm University hosted the “first-ever” academic conference looking at luxury and sustainability in the fashion industry.

Referee, coach and parents in Swedish youth football fight
File photo of a referee holding a red card not related to the story. Photo: Stefan Jerrevång/TT

A football dad broke his leg in the brawl in front of 11-year-old kids after a Hammarby youth football game.

Illicit abattoir kept more than 100 bulls' penises
A couple of young bulls not related to the story. Photo: Jonas Ekströmer/TT

Dried cattle genitalia, goats' heads and hundreds of litres of lard were just a few of the many strange finds discovered when police raided a property in Sweden.

This is officially Sweden's most beautiful beard
The most beautiful beard in Sweden. Photo: Memo Göcek

According to a jury of barbers and 'well known bearded profiles', that is.

Presented by Invest Stockholm
One expat's strategy for making friends in Stockholm

You might think it’s hard to make friends in a new city. But if at first you don’t succeed – try something else!

Injured Swedish photographer protected by 'guardian angel'
Swedish photographer Paul Hansen on another occasion. Photo: Fredrik Sandberg/TT

Photographer Paul Hansen thanked his lucky stars for surviving sniper fire while covering the battle for the Isis-held city of Mosul in Iraq.

How Sweden is trying to smooth relations with Saudis
Swedish Prime Minister Stefan Löfven meeting Saudi Arabia's Trade Minister Majid bin Abdullah Al Qasabi. Photo: Henrik Montgomery/TT

Sweden's Prime Minister Stefan Löfven has visited Saudi Arabia a year and a half after relations turned frosty in a major diplomatic row.

My Swedish Career
'Swedish people love it, but they find it quite odd'
Scottish entrepreneur William Macdonald. Photo: Michael Campanella

Meet the web developer and entrepreneur using traditional Scottish ceilidh dancing to break the ice with Swedes.

Sponsored Article
Last chance to vote absentee in the US elections
People-watching: October 21st-23rd
Sponsored Article
This is Malmö: Football capital of Sweden
Fury at plans that 'threaten the IB's survival' in Sweden
Analysis & Opinion
Are we just going to let half the country die?
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
Where is the Swedish music industry heading?
Angry elk chases Swede up a lamp post
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
People-watching: October 20th
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Stockholm: creating solutions to global challenges
Swede punches clown that scared his grandmother
Sponsored Article
Swedish for programmers: 'It changed my life'
Fans throw flares and enter pitch in Swedish football riot
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
Top 7 tips to help you learn Swedish
Property of the week: Linnéstaden, Gothenburg
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
Swedish school to build gender neutral changing room
People-watching: October 14th-16th
Sponsored Article
Stockholm: creating solutions to global challenges
Man in Sweden assaulted by clowns with broken bottle
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Nobel Prize 2016: Literature
Sponsored Article
Where is the Swedish music industry heading?
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Sponsored Article
One expat's strategy for making friends in Stockholm
Record numbers emigrating from Sweden
Sponsored Article
Nordic fashion in focus at Stockholm University
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
Property of the week: Triangeln, Malmö
Sweden unveils Europe's first elk hut
People-watching: October 7th-9th
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
Missing rune stone turns up in Sweden
Nobel Prize 2016: Chemistry
jobs available