Swedish Housing Market Gets Good News as Prices May Have Bottomed
- Home prices are down 12% from peak and may have reached trough
- Most forecasters have penciled in 20% drop in values
New residential apartment blocks in the Hagastaden district of Stockholm
Photographer: Andrey Rudakov/BloombergThis article is for subscribers only.
Sweden’s third biggest bank turned clearly more optimistic in its outlook for the country’s battered housing market, saying prices have bottomed out.
Sweden — one of the worst-hit residential property markets globally — has now recorded a 12% drop in home values from their peak at the start of 2022, and no further declines are expected, according to Svenska Handelsbanken AB. That projection contrasts with most other forecasters, who still see a 20% overall decline due to expected interest-rate hikes.