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Swedish housing prices head south

TT/Rebecca Martin · 14 Sep 2011, 15:41

Published: 14 Sep 2011 15:41 GMT+02:00

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”We now have enough information to say that there is a small dip in prices. And we still think that developments will stay calm over the next few months, with one percent up or down,” said Lars-Erik Nykvist, CEO at real estate agency Fastighetsbyrån to daily Dagens Nyheter (DN).

Apartment prices fell all across Sweden between June and August compared to the period covering March to May.

The statistics also show that the housing prices in Sweden's bigger cities have fallen more than in less built up areas.

The biggest fall was in central Malmö where prices fell by 8 percent.

In Stockholm and Gothenburg the market fell by between 1 and 2 percent. House prices also decreased during the same period, according to Mäklarstatistik.

According to Nykvist there are many reasons for the slowdown of the market.

One of these is the record-high inventory of properties on the market.

However, the fear of increased interest rates is also ever present in the buyer's mind, said Nykvist.

Swedish bank SEB presneted figures earlier in the week showing that Swedish households believe in falling housing prices in the near future.

However, according to Nykvist, it is unlikelt that Sweden will see any sudden changes up or down on the market in the near future.

Mäklarstatistik also analysed the effects of the mortgage ceiling, put into effect in October 2010.

Story continues below…

”Many believed that the mortgage ceiling would make it difficult for first-time buyers to get onto the housing market and that this would lessen demand on small flats, especilally in smaller cities,” Nykvist said in a statement.

However, the analysis has not shown any indication that prices have fallen to a higher degree for small flats in city areas or that the prices have developed differently in different housing categories.

”It is however uncertain whether some groups have been excluded from the market, even if that is not reflected in the prices,” said Nykvist.

TT/Rebecca Martin (news@thelocal.se)

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Your comments about this article

17:35 September 14, 2011 by bjorkon
Most banks seem to have disregarded the ceiling, thats why there has not been a major shift .. yet. You can get the deposit required as an unsecured loan from the same bank giving you the mortgage! The market was due for a fall anyway, and financial turmoil will make this just the beginning.

Why do they always quote the realtors? As if they ever tell the truth!
20:01 September 14, 2011 by play nice
"... it is unlikely that Sweden will see any sudden changes up or down on the market in the near future."

Nykvis is "whistling pass the graveyard".

"Why do they always quote the realtors?"

because the media loves "experts" who agree with them
20:47 September 14, 2011 by the fonz
Supply/demand factors and the relative strength of the economy will maintain the market. Whichever way you look at it we haven't got the problems the UK has or the rest of Europe.

I for one can't get up the ladder yet and the only way I will is by earning more as I get older - and that my friends is life.
21:49 September 14, 2011 by swedejane
Just the beginning.
16:13 September 15, 2011 by karex
A balance has to be reached. It is quite easy to completely misinterpret statistics if only choice numbers are shown. I think it's good that house prices are going down if my salary isn't going up proportionately to accompany the rise in real estate... same goes for public service costs and food.
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