Housing prices continue to plummet

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Published 2 December 2022 at 16.25

Economics. Housing prices in Sweden continued to fall broadly in November. In Greater Stockholm, house prices have fallen by as much as 20 percent since spring's peak, according to statistics from state-owned SBAB and housing site Booli.

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The prices of apartments and villas fell during November in all regions with the exception of apartment prices in Northern Sweden (+1.2 percent) and villa prices in Greater Gothenburg (+1.2 percent).

< p>Villa prices fell the most in Greater Stockholm (-4.1 percent) and apartment prices the most in Stormalmö (-3.1 percent).

Since the top listings last spring, housing prices have now fallen by almost 15 percent in Sweden . Greater Stockholm (-19.8 per cent), followed by Stormalmö (-18.6 per cent) and Greater Gothenburg (-17.7 per cent), shows the largest overall price drop from the peak for villas. Apartment prices have fallen the most from the peak in Greater Gothenburg (-14.5 percent), followed by Stormalmö (-13.1 percent) and Southern Sweden (-12.7 percent).

– Continued rising mortgage rates mean continued falling housing prices. If the fall continues, we will soon be on a total price drop of the 20 percent that we previously predicted as a result of the interest rate rise. Then we have not taken account of the uncertain development of electricity prices, which reasonably affects house prices more than apartment prices. Our forecast also assumes that we will not see a marked increase in unemployment while interest rates remain high. Then we will see a significantly greater decline than 20 percent, says Robert Boije, Chief Economist at SBAB, in a press release.