09-01-2023, 04:08 PM
Melissa Lawford
Thu, 5 January 2023 at 7:26 pm SGT
Swedish house prices are falling at the fastest rate in the world as high interest rates destroy the pandemic property boom.
This autumn, mainstream house prices in Sweden have fallen by 14pc since their 2022 market peak, according to Knight Frank. This was the biggest drop in any of the 56 countries tracked by the estate agent.
In December, the state-owned lender SBAB recorded a 17pc house price drop since the spring. And experts say it could be a sign of things to come in the UK.
......
Oxford Economics, an analyst, has forecast that prices in Sweden will fall by 20pc – one of the biggest drops in the world
......
The Swedish forecast is second only to Canada’s, where Oxford Economics has forecast a 30pc peak-to-trough fall, but the remarkable thing about Sweden is the speed of change.
......
Sweden is particularly exposed to the blow of high rates for three reasons, Mr Kral said.
First, it has extremely high levels of household debt – at 203pc of net disposable income, according to the OECD.
......
Second, the majority of mortgages in Sweden are on short-term fixed-rate or variable rate deals, meaning higher interest rates filter through very quickly into higher costs for homeowners.
https://sg.style.yahoo.com/inside-sweden...57033.html
Thu, 5 January 2023 at 7:26 pm SGT
Swedish house prices are falling at the fastest rate in the world as high interest rates destroy the pandemic property boom.
This autumn, mainstream house prices in Sweden have fallen by 14pc since their 2022 market peak, according to Knight Frank. This was the biggest drop in any of the 56 countries tracked by the estate agent.
In December, the state-owned lender SBAB recorded a 17pc house price drop since the spring. And experts say it could be a sign of things to come in the UK.
......
Oxford Economics, an analyst, has forecast that prices in Sweden will fall by 20pc – one of the biggest drops in the world
......
The Swedish forecast is second only to Canada’s, where Oxford Economics has forecast a 30pc peak-to-trough fall, but the remarkable thing about Sweden is the speed of change.
......
Sweden is particularly exposed to the blow of high rates for three reasons, Mr Kral said.
First, it has extremely high levels of household debt – at 203pc of net disposable income, according to the OECD.
......
Second, the majority of mortgages in Sweden are on short-term fixed-rate or variable rate deals, meaning higher interest rates filter through very quickly into higher costs for homeowners.
https://sg.style.yahoo.com/inside-sweden...57033.html