Swedish home prices continued to fall in the month of December. Even if there are evident risks of an additional decline in price in the near-term, stable prices are expected longer out. After the marked downturn from August to November, home prices continued to fall in December. Home prices in the whole country dropped 0.9 percent sequentially and by 2.5 percent year-on-year, showed HOX/Valueguard.
The fall was mostly seen in Stockholm where prices of apartment dropped 1.9 percent sequentially and 9 percent year-on-year. This was noticeably lower than projections. It is still too early to make a significant prediction of the January outcome since the figure of transactions has been low in the first two weeks. However, indicators imply that the supply of both existing and new home sales continue to be comparatively high which might pull down prices slightly further in the coming months.
“Longer out, however, we stick to our forecast of stable home prices. To see a sustained downturn in prices, it will likely also involve a change in households’ housing costs. As long as mortgage rates remain low, which we expect, it is after all difficult to see a continued marked decline”, stated Nordea Bank in a research report.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest