Continued broad falls in housing prices


Published 2 October 2022 at 18.53

Economy. Prices for both apartments and houses continued to fall broadly – ​​and in some regions sharply – in September. This is shown by SBAB and Booli's price index HPI, which is based on all housing sales registered on Booli during September.

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In Stormalmö and Northern Sweden, apartment prices fell the most (almost 3 percent).

House prices fell the most in Northern Sweden (just over 5 percent) and Greater Gothenburg (almost 5 percent). The prices of houses in Stormalmö were stable, but fell in seasonally adjusted terms.

Since the prices were at their highest, apartment prices, depending on the region, have fallen in total by between 8 and just over 10 percent. Since previous peak prices, house prices have fallen by a total of just over 14 percent in Greater Stockholm and Greater Gothenburg.

In seasonally adjusted terms, the price drop is the largest monthly decline for Sweden as a whole since the year the price index began to be calculated (2013).

– We have predicted that housing prices could fall by around 20 percent for Sweden as a whole as a result of the interest rate increases. Even though the interest rate increases are expected to continue until the beginning of next year, we have already seen total price drops for apartments in several regions by just over 10 percent and in some regions for houses by over 14 percent. Even though the expected rise in interest rates may to some extent be priced into the price falls we have already seen, we should probably still expect housing prices to continue to fall in the future, says Robert Boije, chief economist at SBAB, in a dispatch.

He continues:

– In our forecast of housing prices, we have not taken into account the importance of high electricity prices for housing prices. This suggests that the risks for housing prices going forward are more likely to be on the downside than on the upside.