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The over priced Swedish housing market start seeing red again?
Thursday, 14 June 2012
The recovery in the Swedish housing market was behaving as if there was
going to be a steady rebound but that seem to have been wishful
thinking as worry in the sector seem to be returning.
Brokerage manager, Erik Olsson believes that there is a give away sale
on Swedish houses homes right now, according to media reports.
Last year was a tough year in the Swedish housing market. Sales slowed
and prices fell. This is despite the hard factors such as interest
rate, disposable income and employment being stable.
"What made that prices went down by ten percent was because we were
worried, "said Erik Olsson, president of brokerage firm with the same
name.
At the beginning of the year, there were positive signs from the
housing market. The most acute debt crisis was believed to have blown
over, stock markets rose and brokers testified to better days coming in
the market.
But events in recent weeks have brought in new concerns. Stockholm
Stock Exchange has fallen and now stands at minus for his year. Spain
has been forced to take an emergency loan to rescue their troubled
banks and an increasing number of analysts are talking about an
upcoming Greek exit from the Euro.
"We talk more about Greece and Spain than in the past. In the New Year
fears for the uncertainty fell to about five percent. Now there is the
feeling that it is increasing again. People react quickly on this
stuff, "said Erik Olsson.
Right now there is a wide selection in the market that feels the
increasing unrest and such uncertainty can cause both sellers and
buyers to pull cold feet, Erik Olsson thinks.
"The effect is that you want to wait, so both buyers and sellers get anxious. Then there will be fewer deals, "he says.
On Friday Mäklarstatistik (real estate statistics) will be released and
Valueguard’s new figures boprisutvecklingen (house price development)
in May will also be presented. Erik Olsson believes that prices will
fall somewhat in the near future. Only when the storm clouds are
cleared would the curve start turning upwards, he believes.
With growing uncertainty in Spain, Italy, Greece and the U.S., even if
there is bad news in Spain or not there will be tough time in 20 years
to come, contends Olsson.
"Overall, I think that people should buy their new home when they need
it. These fluctuations will not affect a purchase. Should you however
sell without buying something new? That maybe should wait, "he
continues.
By Scancomark.se Team
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