Published July 25, 2021 at 3:16 pm
Finance. Sweden enjoys the authorities' amortization-free and almost interest-free mortgages. House prices are rising by 20 percent per year and the hottest trend right now is to buy houses you have not seen, reports Aftonbladet.
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A broker on Gotland explains to Aftonbladet how the business model works.
– Houses have been out for 3.5 million and then a buyer calls before showing and gives 5 million.
The buyer thus gets quickly an item to borrow to and can start making money on the increase in value immediately. The seller gets both fast money and a guaranteed high price.
– Earlier this morning I sold two items that way. It's fast now, says broker Johan Fahlstedt to Aftonbladet.
According to the newspaper, objects are now sold in the middle of the country for SEK 10–12 million, which has never happened before. And when Dagens Industri interviews various banks and brokerages, no one warns that prices could crash.
On the contrary, says Johan Engström at Swedbank's Real Estate Agency, there will be “a flattening, no decline in prices” . He is supported by Pia-Lotta Svensson, also from Swedbank, who believes that so-called housing bubbles do not exist at all.
– I do not believe in the concept of housing bubble itself, says Pia-Lotta Svensson to Aftonbladet.
Robert Boije, chief economist at state SBAB, also completely denies that Sweden would have had a housing bubble before the coronary.
< - There was no price bubble for housing before, but now you can start to think a little if we do not experience a small corona bubble, he says to DI.
The state economist also denies that monetary policy or the abolished the amortization requirement would have something to do with the skyrocketing prices.
– It is a pure pandemic effect. People have simply prioritized having a large living space and demanded larger villas, he tells DI.
At the same time, many researchers who are not interviewed in the media – ie outside the banking and brokerage sector – warn that the authorities' increasingly generous measures for raising housing prices is unfair to young people, when the elderly are “guaranteed” an increase in jobless wealth. In addition, it is not certain that prices can always be raised, and then a crash awaits. In combination with a policy that de facto works to avoid any tendency to fall in prices in the housing market, the only thing that is achieved is that certain groups are excluded from owning housing while at the same time existing owners are almost guaranteed an increase in wealth “, write researchers Karolina Ekholm and Anders Åkerman in a debate article in SvD.