‘The worst is over’: Swedish property prices rise for third month in a row
Residential property prices have risen in Sweden for the third month in a row. Could this be the start of a new upward trend?
"This suggests that the market has bottomed out," SBAB's chief economist Robert Boije told TT newswire. "The outlook is bright. This is the third month in a row where prices have risen. If nothing unexpected happens, the worst is over."
The price of detached houses rose by 2.2 percent, while the price of apartments rose by 1.2 percent - something which surprised Boije.
“Definitely, when you consider the fact that we’ve seen indications that many housing associations haven’t raised their monthly fees in line with increased costs and higher interest rates,” he said.
“I don’t know if buyers have thought about that.”
Despite this, he doesn’t believe that higher monthly fees will come as a shock for new buyers.
“Maybe for some households, but the vast majority have good margins.”
In total, property prices have risen by around four percent since the start of the year. When adjusted for seasonal changes in property prices, the underlying trend is also positive.
“We’re confident about what’s around the corner. But at the same time, I want to be cautious, and I don’t believe there will be any major price increases. There probably won’t be a bull run on the price front,” he said.
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"This suggests that the market has bottomed out," SBAB's chief economist Robert Boije told TT newswire. "The outlook is bright. This is the third month in a row where prices have risen. If nothing unexpected happens, the worst is over."
The price of detached houses rose by 2.2 percent, while the price of apartments rose by 1.2 percent - something which surprised Boije.
“Definitely, when you consider the fact that we’ve seen indications that many housing associations haven’t raised their monthly fees in line with increased costs and higher interest rates,” he said.
“I don’t know if buyers have thought about that.”
Despite this, he doesn’t believe that higher monthly fees will come as a shock for new buyers.
“Maybe for some households, but the vast majority have good margins.”
In total, property prices have risen by around four percent since the start of the year. When adjusted for seasonal changes in property prices, the underlying trend is also positive.
“We’re confident about what’s around the corner. But at the same time, I want to be cautious, and I don’t believe there will be any major price increases. There probably won’t be a bull run on the price front,” he said.
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