The price drop was just as large for apartments as for houses. The largest decrease since the update a month ago was seen in Greater Stockholm, with a decline of 3.7 percent, and in northern Sweden where prices fell by 3.3 percent. Apartment prices fell the most in southern Sweden and Greater Gothenburg with over 2 percent. This is shown by the latest monthly figures from the state-owned SBAB and the real estate website Booli.
Prices usually fall normally during the autumn. Moreover, the supply of homes is at historically high levels. It is obvious that many are trying to sell now, says Robert Boije.
Individual Monthly Outcome
But why certain regions stand out in the latest monthly figures, he thinks is difficult to answer.
It is an individual monthly outcome and it can even out over time, but that the price drop for houses in Stockholm stands out in this way is still a bit surprising. When it comes to the northern parts of the country, we have had some trouble with battery factories and other things that may have affected, he says.
Rising Prices
At the same time, the price drop as a whole in the country was lower than what is normally seen for the season. Adjusted for season and other temporary effects, prices rose by 0.6 percent. Summarized since the turn of the year, housing prices, despite the price drop in October, have increased by 6.2 percent.
When we think away the normal seasonal effects and try to calculate the trend here and now, it still looks positive with an underlying upward pressure on prices, says Robert Boije.
He means that there is a pent-up demand for changing homes after the crisis times that have been. Moreover, psychological effects can arise when buyers see a brighter future in line with the Swedish Central Bank lowering interest rates. Despite this, homeowners cannot expect a huge boost ahead.
Our prognosis is based on household incomes and long-term interest rates, and then we land on housing prices increasing by around 5 percent per year over the next two years.
Apartments
Greater Stockholm: - 0.5 percent
Greater Gothenburg: - 2 percent
northern Sweden: - 0.8 percent
central Sweden: 0.1 percent
southern Sweden: - 2.1 percent
Single-family Homes
Greater Stockholm: - 3.7 percent
Greater Gothenburg: - 0.7 percent
northern Sweden: - 3.3 percent
central Sweden: - 2.5 percent
southern Sweden: 1.8 percent
Source: SBAB Booli Housing Price Index
