House prices fell by 2.4% in Sweden in October, while apartment prices increased by 0.3%, according to the latest SBAB Booli Housing Price Index (HPI).
This means that prices across the overall housing market in Sweden fell by 1.5% in the month.
As the data showed, house prices fell in all six regions monitored by the index, while apartment prices rose in four regions and declined in two.
Falling back
“October is a season where both apartment and house prices usually fall back,” said Robert Boije, chief economist at SBAB. “However, the decline in houses is unusually large this year, while apartment prices, on the contrary, are showing an unusually strong development.”
If seasonal and other temporary effects are included, house prices were down by 0.1% nationally, while apartment prices were 0.6% higher.
Housing market prices are now 7% below their peak, which was recorded in spring 2022. House prices are 9% lower than their peak, while apartment prices are 4% lower.
Full-year increase
“Housing prices have increased by 4.9% so far this year,” Boije added. “In our latest forecast, we estimated that housing prices will have increased by just over 4% this year when we close the year.
“As it stands now, we could still end up there, or possibly slightly lower, if prices fall back as they usually do seasonally in November and December – but that remains to be seen. The rise in interest rates may also hold prices back in the future. […] After a strong development compared to apartments earlier this year, apartment prices are now showing better pressure than house prices.”
The SBAB Booli Housing Price Index is updated monthly and is based on residential property sales registered by Booli. It takes into account factors such as property size, location, number of rooms, plot size and monthly housing association fees. Read more here.
