Swedish house prices hold up better than usual in October – BNN Bloomberg

(Bloomberg) — House prices in Sweden maintained a modest recovery in October, a typically weak month for the Nordic country’s housing market, according to data from state bank SBAB.

In unadjusted terms, house prices fell by 0.9% last month. However, seasonally adjusted, the SBAB data showed a 0.5% increase from the previous month.

The data illustrates how the Swedish market has continued to regain its footing this year after a 15% decline between April 2022 and the end of 2023. House prices have risen by around 6% so far in 2024, more than SBAB’s forecast of 5%. Earnings in percentages until the end of the year, helped by a lower cost of financing for home purchases.

“As the housing market is typically weak with falling prices in late autumn, this forecast is still within reach,” the bank’s chief economist Robert Boije said in a statement. “A large historical supply of homes for sale also supports this thesis.”

Sweden’s central bank will announce a policy rate decision next week and expectations have shifted decisively in favor of a half-point cut as inflation remains below its 2% target and data this week showed the country’s economy remains in a holding pattern. .

Boije also noted that “there may be a pent-up need to move and perhaps also growing optimism on the back of lower interest rates.”