Expectations for house prices in Sweden are at their lowest since the financial crisis
(Bloomberg) – A closely watched indicator of Swedish house prices fell to its lowest level since the global financial crisis amid rising mortgage rates and inflation accelerating to its highest level in three decades.
For August, SEB’s Swedish House Price Indicator – representing the difference between the proportion of respondents who believe prices will rise and expect prices to fall – fell 15 points to less than 42, the lowest since 2008.
“Overall, with little evidence of a near-term pick-up in household sentiment, our best guess is that the indicator and house prices will continue to decline,” SEB economist Marcus Widen said in a statement. research note.
Read more: Swedish house prices have fallen the most since the financial crisis
Widen also pointed to the electricity market as another headwind for the country’s real estate sector. “A less energy-efficient home is likely to be less attractive in the housing market, or buyers are likely to demand a steep discount,” he said.
The proportion of Swedish households expecting lower prices rose to 57% in August while those who still believe in higher prices fell to 15% from 24% the previous month. The survey covered around 1,000 households between July 26 and August 2.
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