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Sweden housing market cools down

Sweden housing market

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Apartments prices in Sweden dropped by 7% in the January-March period compared to the same period of the previous year, according to data from the Association of Swedish Real Estate Agents. Meanwhile, the prices of single-family homes have risen by 1%, according to the association’s data. Compared to December-February, the apartment prices have fallen by 1%, while those of single-family homes have risen by 1%.
In March, Swedish home prices were unchanged from February, but fell by 4.5% on an annual basis. The apartment prices fell by 8.% year-on year, while single-family home prices were down 1.8%.
Property prices have risen much more than wages over the last couple of decades and Swedish households are among the most indebted in Europe.
The housing prices in Sweden have risen since the mid-1990s, turning Swedish households into some of the most indebted ones in Europe. The authorities in the country, as well as the European Commission and the IMF have long warned that the debt level is a serious threat to the economy.
Sweden’s financial regulator has introduced a number of measures in recent years to cool the lean housing market, including mortgage-backed rules for large borrowers.