The forecast: Higher housing prices next year

The economy is weak and unemployment is high. But next year, there may be a brightening, predicts Swedbank in an economic forecast. "We expect housing prices to increase by around 5 percent in 2025," says chief economist Mattias Persson in a press release.

» Published: November 12 2024

The forecast: Higher housing prices next year
Photo: Caisa Rasmussen/TT

Share this article

In its economic report, the major bank notes that the Swedish economy is still weak. The recovery is delayed and growth is expected to decline.

"But we believe that households will start consuming more next year as incomes continue to rise faster than prices, while interest rates fall further," says Persson.

The assessment is that unemployment will peak at 8.7 percent and then start to turn around during the first half of 2025.

Swedbank expects the Swedish Central Bank to continue cutting interest rates, down to 1.75 percent by 2025. It is currently 2.75 percent.

This will benefit the housing market. Prices are therefore expected to increase by around 5 percent in 2025 and 6-7 percent in 2026.

The bank estimates that the Swedish economy will develop weakly this year, 0.6 percent. Next year, they expect GDP to grow by around 2 percent, followed by nearly 3 percent in 2026.

"The outcome of the US election increases uncertainty and we have revised down growth prospects slightly for 2026," says Persson.

Tags

Author

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

More news

Germany Achieves Gas Storage Goal Two Months Early
2 MIN READ

Germany Achieves Gas Storage Goal Two Months Early

Investigator Recommends Against Reintroducing Cousin Inheritance Rights in Sweden
2 MIN READ

Investigator Recommends Against Reintroducing Cousin Inheritance Rights in Sweden

China's Manufacturing Industry Slows in August Despite Stabilized US Trade Relations
2 MIN READ

China's Manufacturing Industry Slows in August Despite Stabilized US Trade Relations

Court Rules Trump's Trade Tariffs Illegal in Judicial Setback
2 MIN READ

Court Rules Trump's Trade Tariffs Illegal in Judicial Setback

Swedish Electric Boat Maker Candela Expands Production to USA
3 MIN READ

Swedish Electric Boat Maker Candela Expands Production to USA

Dousa on Verdict: Tariffs Likely to Persist Despite Court Ruling
1 MIN READ

Dousa on Verdict: Tariffs Likely to Persist Despite Court Ruling

Rice Trade Dispute Halts US-Japan Customs Talks
1 MIN READ

Rice Trade Dispute Halts US-Japan Customs Talks

Court Rules Most Trump Tariffs Illegal but Allows Temporary Continuation
2 MIN READ

Court Rules Most Trump Tariffs Illegal but Allows Temporary Continuation

Klarna Prepares for New York Stock Exchange Debut
1 MIN READ

Klarna Prepares for New York Stock Exchange Debut

Sanctions Loom for Companies Trading with Russia
1 MIN READ

Sanctions Loom for Companies Trading with Russia

Wall Street Declines After July Inflation Data Released
2 MIN READ

Wall Street Declines After July Inflation Data Released

The Job Market in Sweden is Cooling Down - Significant Differences Between Industries

The Job Market in Sweden is Cooling Down - Significant Differences Between Industries

US Inflation Steady at 2.6 Percent in July
1 MIN READ

US Inflation Steady at 2.6 Percent in July

Extended Nuclear Shutdown Raises Electricity Prices in Southern Sweden
2 MIN READ

Extended Nuclear Shutdown Raises Electricity Prices in Southern Sweden

Price Pressure Reduces Alibaba's Second Quarter Profit
1 MIN READ

Price Pressure Reduces Alibaba's Second Quarter Profit

Ikano Bank Reports Loss Amid 670 Million Kronor Credit Losses
1 MIN READ

Ikano Bank Reports Loss Amid 670 Million Kronor Credit Losses

Norway and US Senator Clash Over Oil Fund's Caterpillar Divestment
1 MIN READ

Norway and US Senator Clash Over Oil Fund's Caterpillar Divestment

Tesla Denied New Charging Stations Amid Swedish Union Strikes
1 MIN READ

Tesla Denied New Charging Stations Amid Swedish Union Strikes

No Decision Yet in Legal Battle Between Lisa Cook and Trump
2 MIN READ

No Decision Yet in Legal Battle Between Lisa Cook and Trump

Stockholm Stock Exchange Sees Five Consecutive Days of Decline
2 MIN READ

Stockholm Stock Exchange Sees Five Consecutive Days of Decline