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Housing prices in Sweden continue to fall

The Local Sweden
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Housing prices in Sweden continue to fall
Compared to this spring, housing prices in Sweden have seen a substantial decline of almost 15 percent. Photo by Hanlin Sun on Unsplash

The average price of houses and flats in Sweden continues to fall and is now down 15 percent from its peak last spring, according to November figures from SBAB and Booli.


Swedish property markets are grappling with an enduring trend as housing prices continue their downward spiral.

According to the monthly SBAB and Booli index, property prices experienced a 1.4 percent drop in November. Detached houses saw a decline of 1.8 percent, while flats dipped by 0.7 percent. When factoring in seasonal adjustments, prices fell by 0.5 percent, marking the third consecutive monthly decline.

The most pronounced price decrease was observed in northern Sweden, particularly affecting detached houses. However, there was an exception in central Sweden, where detached house prices bucked the trend, rising by 1.1 percent.

Further price declines on the horizon

Commenting on the situation, Robert Boije, Chief Economist at SBAB, noted that this decline was in line with their earlier prediction of an eventual 20 percent price drop.

Experts foresee a continuation of the price downturn for both flats and detached houses.

In a comment for the newspaper Telgenytt, Boije pointed to the abundant housing supply and the likelihood that many cooperative housing associations would have to raise their monthly fees significantly due to rising interest rates, as factors pushing down flat prices.

Housing prices have fallen almost 15 percent since this spring, with apartment prices down by 10.5 percent and the prices of detached houses down by 17 percent.

These price levels have now reached their lowest point since 2015 for flats and since 2017 for detached houses.

When adjusted for inflation, the real price of houses and flats has fallen 26 percent since the spring.


Soon for sale: An emerging housing market trend

Another noteworthy trend emerging in the housing market is the increasing number of homes listed as "Soon for sale."

Sellers are strategically adopting this approach to gauge market interest before deciding to sell.

While some sellers are eager to proceed, others prefer to wait for more favourable offers.

This practice has seen significant growth over the past five years and now constitutes nearly half of all housing advertisements on Booli.

According to the report, the popularity of this strategy varies by location.


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