Published 23 January 2023 at 06.50
Economy. Villa prices continue to plummet and fell significantly in 2022, reports SBAB. The worst hit in absolute numbers are villa owners in Stockholm, who on average lost close to 1.7 million kroner in ten months – or roughly 5,500 kroner a day.
Like the article på Facebook
The housing bubble
- " ;Never have so many Swedes lost so much money in such a short time"
- House prices continue to fall by three percent a month
- The price drop for housing was 15 percent in 2022
- Every other young person needs to sell if variable mortgage interest rates reach 6 percent
- Ingves in CNBC: "Expected" that we crash now
Show all
Stormalmö (21.5 percent) shows the largest overall drop in percentage, followed by Greater Stockholm (21 percent) and Central Sweden (20 percent).
But in absolute terms, it is Stockholm's villa owners who pay the most to live . In the municipality of Stockholm, the average price of a villa has fallen from 9 million during the price peak at the end of February 2022 to 7.3 million at the end of 2022.
This gives a depreciation rate of just over 5,500 kroner a day or 170,500 kroner per month. And it has lasted ten months in a row.
Right now, there are few signs that the negative price trend is about to reverse, but a number of circumstances suggest that it has only just begun.
In February, the Riksbank is expected to raise interest rates again by 0.5 percentage points, as a result of the unexpectedly high Swedish inflation, which in turn causes the loan space to decrease for many households.
At the same time, unemployment is expected to rise and many objects are thus at risk of being sold on the market, which currently already has a record supply of housing.
A further circumstance that is pushing prices down is that the generations that own almost all of the more expensive villas in Sweden – boomers and their parents – are now approaching the end of their lives.
The fact that housing prices in Sweden are so high also means that many heirs cannot afford to buy each other out and take over more expensive homes, which means that they have to be sold in order for the inheritance to be transferred.
Even in this way, forced items on the market that otherwise would not have been for sale u.