Swedish home prices likely to have remained stable in December – Nordea Bank

After the noticeable downturn in Swedish home prices from August to November, they are expected to have been stable in December, noted Nordea Bank in a research report. The HOX/Valueguard is set to release the December report in January.

“Crunching the weekly figures from Booli Pro, we forecast largely stable prices for December. We see home prices at 0.0 percent over the month (seasonally adjusted) and down by 1.5 percent over the year. Thus, the year seems to have ended on a calm note”, stated Nordea Bank.

Prices dropped in most cities in the autumn. In November, apartment prices in Stockholm were 9 percent lower as compared to the peak in May. However, weekly data indicates towards a turn in December, while apartment prices in Stockholm are expected to rise 0.5 percent sequentially, but still down by 6.5 percent over the year.

The weekly data implies that supply dropped noticeably in December, which is usual for the season. Downturn in the autumn could be explained by the large supply of both existing and new homes that hit the market after the summer. Supply continues to be comparatively high and might possibly increase further in the near term. This might continue to be a drag on prices and pose a downside risk to the forecast of stable prices ahead, said Nordea Bank.

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