Rising incomes combined with lower interest rates and the government's planned changes to mortgage ceilings are expected to drive up housing prices next year.
"We expect increased sales activity, but many households are still financially strained," says Helena Bornevall, senior macroeconomist, in a press release.
At the same time, the major bank predicts that housing construction will continue to be subdued in 2026. Instead, the construction economy will gradually strengthen through investments in defense, water and energy.
“The rapid modernization of the total defense is driving the construction of shelters, ports and training facilities,” says Christina Nyman, chief economist at Handelsbanken.
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