Swedish home prices remain stable in July, likely to stay stable ahead

Swedish home prices remained stable in July on a sequential basis. On a year-on-year basis, home prices rose 2.1 percent, giving some support to domestic demand, according to HOX/Valueguard home price index. This was a bit below forecast. Taking seasonal affects into account, both apartment prices and house prices was also fairly stable on the month.

Usually, July is a calm month on the housing market, but this year July surprised with high transaction volumes. The supply appears to have peaked, and even though the share of apartments at reduced price is high, the housing market shows signs of a stabilization.

“Falling long-term rates and more stimulus from Central Banks around the world might give further support for the housing market during the fall, suggesting some upside risks to our forecast of stable home prices ahead”, said Nordea Bank in a research report.