The Swedish economy is still moving slowly and households are holding back on consumption, which has been reflected on the housing market. When the year has reached its end, housing prices are estimated to have increased by only one percent this year, slightly less for apartments than for houses, according to SBAB's chief economist Robert Boije.
This despite the fact that the Swedish Central Bank is expected to lower the interest rate once more this autumn, according to his assessment. The government's unusually large budget initiative ahead of 2026 should not affect inflation more than marginally "and not constitute any obstacle to a reduction of the repo rate" and thus lower variable mortgage rates, writes Boije.
Next year, the economy is expected to pick up speed, with lower unemployment as a result, and housing prices are expected to increase by around 5-6 percent, according to SBAB's forecast.
