Nearly six out of ten Swedes asked believe in rising property prices. Hopes of further interest rate cuts contribute to this attitude.
On Thursday, the Riksbank will announce its next interest rate decision. From the economists' point of view, no interest rate cut is expected, but this does not prevent those surveyed in Länsförsäkringar's latest property price barometer from believing in a continued price increase in the housing market over the coming year.
Compared to the previous month, when 53 per cent did so, 57 per cent now make the assessment that prices will rise. Only 6 per cent believe in falling prices, while 32 per cent believe that no price changes will occur.
"Households are strongly convinced that property prices will rise in the future, which is a consequence of clear indications of forthcoming interest rate cuts from the Riksbank, together with a relatively bright macroeconomic situation," says Stefan Westerberg, private economist at Länsförsäkringar, in a press release.
The survey is conducted in the form of a randomly recruited web panel with 1,500 participants.
