The drop in the Swedish housing market in September intensified to the highest since the financial crisis, with single-family home prices under increasing pressure as higher energy prices scare off buyers.
Details. The largest Scandinavian real estate market, which was one of the hottest during the pandemic, is now one of the leaders of the global cooling of housing amid aggressive interest rate hikes by central banks seeking to cope with rising consumer prices. The decline in the cost of housing compared to the March peak last month reached 11.2%, which was the biggest drop since the global financial crisis, when prices fell by 12.6% in eight months.
The HOX house price index in Sweden fell 2.8% in September compared to August, according to Valueguard, which collects data.
Quote. "First of all, the price of mansions is in the focus of correction at the moment," said Henrik Freudenthal, a representative of broker Svensk Fastighetsformedling. "Of course, this was influenced by concerns about operating costs due to the expected high cost of electricity this winter."
Prices for private homes, which rose the most during the Covid-19 crisis, fell by 3.3% in September, while apartment prices fell by 1.9%. In the first half of October, apartment prices continued to decline in Stockholm and Gothenburg, the second largest city in Sweden.
Source: Bloomberg
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