Swedish House Prices 4th Consecutive Monthly Slide
17 August 2011
Swedish house prices fell 2% on the month in July according to the latest data from Swedish real estate statistics website Mäklarstatistik. Flat prices fell 6%.
Swedish property prices have now fallen for the last 4 months straight, but it is still too early to be concerned says Claudia Wörman of the Association of Swedish Real Estate Agents.
"I'd be more worried if there weren’t any buyer interest but I am assured that there is," said Claudia Wörman, head of analysis at the association to The Local.
According to the data house prices are still rising in some parts of the country, with apartment prices in central and greater Stockholm rising 2% in July after falling for the previous 2 months.
Apartments in central and greater Malmö rose by 3% and 5% respectively and those in central Gothenburg rose 1%.
While conceding that there has been a definite change in the market, Wörman said it could still be just a temporary dip, and that the association is "monitoring the situation closely, especially the developments over August and September," she said.
Wörman said that there are many reasons behind the falling prices, and said that the market is "all about psychology. This brings back memories
According to Wörman, there are many reasons behind the falling prices. And the property market is all about psychology, she told The Local. That reminds me of when all the UK agents were blaming the price drops on the negative press.
"Even if we have a relatively stable economy here in Sweden the crises in Greece and in the US will have an effect on us as well, not in the least because it creates a feeling of insecurity," said Wörman.
Wörman also blamed the introduction of an 85% mortgage ceiling last year, but said that she couldn't see the down trend continuing.
"Unless we have a massive rise in unemployment I find it hard to believe we are going to see a significant slump. This is the nature of the housing market – it fluctuates. We are pretty well off here in Sweden," she told The Local.