Housing prices fell – one detail surprises

The housing prices fell by 1.1 percent in July. Adjusted for season, however, both prices for tenant-owned apartments and houses increased slightly. It is somewhat surprising that apartment prices have developed better than house prices over the year, considering that many housing associations are facing continued increased fees, says Robert Boije, chief economist at SBAB.

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Housing prices fell – one detail surprises
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After a period with high interest rates, housing associations have had to raise their fees and more will be needed for many, according to Robert Boije. Nevertheless, apartment prices have risen by 6.1 percent since the turn of the year, compared to 5.3 percent for houses.

It is possible that not all apartment buyers are fully aware of this.

July was the first month this year when housing prices fell, but this pattern is not unusual since fewer sales take place during the summer. Prices for apartments and houses fell by 1.2 and 1.0 percent, respectively, but adjusted for season and other temporary effects, apartment prices rose by 0.4 percent and house prices by 0.2 percent, according to SBAB's and the housing site Booli's housing index.

What drove the price drop in July for apartments was, however, only Greater Stockholm and Greater Gothenburg. In the rest of the country, apartment prices rose.

Most notable is that apartment prices in Greater Gothenburg fell by 3.7 percent and that house prices in Greater Stockholm fell by 3.6 percent.

Generally, it is a fairly balanced development we see in prices overall. One should not draw too large conclusions from individual regions in just one month, says Robert Boije.

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

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