Households Expect Housing Prices to Fall Despite Market Changes

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Households Expect Housing Prices to Fall Despite Market Changes
Photo: Johan Carlberg/SVD/TT

Households' expectations of the housing market are pessimistic. More people believe that prices will fall.

The number of households that believe the prices of apartments will rise decreases from the previous month by 3 percentage points, down to 46 percent, according to a survey from SEB.

15 percent believe at the same time in falling housing prices, an increase of one percentage point from the previous month.

"Pessimism does not release its grip on households' housing price expectations, despite interest rate cuts and announcements of more generous mortgage rules", says Américo Fernández, private economist at SEB in a press release.

More households also want to tie their mortgages. The increase from last month is 2 percentage points and lands at 11 percent.

"It indicates that a weak economic situation, record large supply and long wait until the changed mortgage rules are actually implemented, weigh heavier than a single interest rate cut from the Swedish Central Bank", says Américo Fernández.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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